By Toni Weeks
San Luis Obispo, Calif., June 17 - Royal Bank of Canada priced $1.4 million of trigger phoenix autocallable notes due Dec. 18, 2014 linked to the worst-performing of three equity securities, according to a 424B2 filing with the Securities and Exchange Commission.
The three securities are the common stock of Bank of America Corp. and Citigroup Inc. and the common units representing limited partner interests of Blackstone Group LP.
If each stock closes at or above its coupon barrier - 65% of its initial share price - on any quarterly observation date, the issuer will pay a contingent coupon for that quarter at an annualized rate of 16.6%. Otherwise, no coupon will be paid that quarter.
If each stock closes at or above its initial price on a quarterly observation date, the notes will be called at par plus the contingent coupon.
If the notes are not called and each stock finishes at or above its trigger price, the payout at maturity will be par plus the contingent coupon. Otherwise, investors will receive a number of shares of the worst-performing stock equal to the principal amount divided by the initial price of the worst-performing stock or, at the issuer's option, the cash value of those shares.
RBC Capital Markets, LLC is the agent.
| Issuer: | Royal Bank of Canada
|
| Issue: | Trigger phoenix autocallable notes
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| Underlying stock: | Bank of America Corp. (Symbol: BAC), Citigroup Inc. (Symbol: C) and Blackstone Group LP (Symbol: BX)
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| Amount: | $1.4 million
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| Maturity: | Dec. 18, 2014
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| Coupon: | 16.6%, payable quarterly if each stock closes at or above trigger price on observation date for that quarter
|
| Price: | Par
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| Payout at maturity: | Par plus contingent coupon if each stock finishes at or above trigger price; otherwise, a number of shares of the worst-performing stock equal to the principal amount divided by the initial price of the worst-performing stock or, at the issuer's option, the cash value of those shares
|
| Call: | Automatically at par plus contingent coupon if each stock closes at or above initial share price on quarterly observation date
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| Initial share prices: | $13.21 for BofA, $21.14 for Blackstone Group, $50.29 for Citigroup
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| Trigger prices: | $8.59 for BofA, $13.74 for Blackstone Group, $32.69 for Citigroup, 65% of initial prices
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| Pricing date: | June 13
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| Settlement date: | June 18
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| Agent: | RBC Capital Markets, LLC
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| Fees: | 2.25%
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| Cusip: | 78008S3P9
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