By Marisa Wong
Madison, Wis., Oct. 6 – Royal Bank of Canada priced $2.14 million of trigger phoenix autocallable notes due Oct. 6, 2016 linked to the worst performing of three stocks, according to a 424B2 filing with the Securities and Exchange Commission.
The three reference companies are Bank of America Corp., Blackstone Group LP and Citigroup Inc.
If each stock closes at or above its barrier price, 65% of its initial price, on a quarterly observation date, the issuer will pay a contingent coupon for that quarter at the annual rate of 11%.
If each stock closes at or above its initial price on any quarterly observation date, the notes will be called at par plus the contingent coupon.
If the notes are not called, the payout at maturity will be par plus the contingent coupon unless the final price of any stock is less than its barrier price, in which case investors will receive a number of shares of the worst performing stock equal to $1,000 divided by its initial price.
RBC Capital Markets, LLC is the underwriter.
| Issuer: | Royal Bank of Canada
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| Issue: | Trigger phoenix autocallable notes
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| Underlying stocks: | Bank of America Corp. (Symbol: BAC), Blackstone Group Inc. (Symbol: BX), Citigroup Inc. (Symbol: C)
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| Amount: | $2.14 million
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| Maturity: | Oct. 6, 2016
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| Coupon: | If each stock closes at or above barrier price on quarterly observation date, contingent coupon will be paid for that quarter at annual rate of 11%
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| Price: | Par
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| Payout at maturity: | If each stock finishes at or above barrier price, par plus contingent coupon; otherwise, a number of shares of worst performing stock equal to $1,000 divided by its initial price
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| Call: | Automatically at par plus contingent coupon if each stock closes at or above initial price on any quarterly observation date
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| Initial prices: | $17.01 for BofA, $31.83 for Blackstone, $52.05 for Citi
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| Barrier prices: | $11.06 for BofA, $20.69 for Blackstone, $33.83 for Citi; 65% of initial prices
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| Pricing date: | Sept. 29
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| Settlement date: | Oct. 6
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| Underwriter: | RBC Capital Markets, LLC
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| Fees: | 2.25%
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| Cusip: | 78010U3Q8
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