By Angela McDaniels
Tacoma, Wash., Feb. 28 - Royal Bank of Canada priced $891,000 of airbag phoenix autocallable optimization securities due Aug. 31, 2015 linked to the common stock of Expedia Inc., according to a 424B2 filing with the Securities and Exchange Commission.
Each month, the notes will pay a contingent coupon at the rate of 10.3% per year if Expedia shares close at or above the coupon barrier, 75% of the initial share price, on the observation date for that month.
The notes will be automatically called at par if Expedia shares close at or above the initial share price on any autocall observation date, which occur quarterly.
If the notes are not called and the final price of Expedia shares is greater than or equal to the conversion price, 80% of the initial share price, then the payout at maturity will be par. Otherwise, investors will receive a number of Expedia shares equal to $1,000 divided by the conversion price.
UBS Financial Services Inc. and RBC Capital Markets, LLC are the agents.
| Issuer: | Royal Bank of Canada
|
| Issue: | Airbag phoenix autocallable optimization securities
|
| Underlying stock: | Expedia Inc. (Symbol: EXPE)
|
| Amount: | $891,000
|
| Maturity: | Aug. 31, 2015
|
| Coupon: | Each month, notes pay contingent coupon at rate of 10.3% per year if Expedia shares close at or above coupon barrier on observation date for that month
|
| Price: | Par
|
| Payout at maturity: | If final share price is greater than or equal to conversion price, par; otherwise, number of Expedia shares equal to $1,000 divided by conversion price
|
| Call: | Automatically at par if Expedia shares close at or above initial share price on any quarterly autocall observation date
|
| Initial share price: | $78.52
|
| Coupon barrier: | $58.89, 75% of initial share price
|
| Conversion price: | $62.82, 80% of initial share price
|
| Pricing date: | Feb. 26
|
| Settlement date: | Feb. 28
|
| Agents: | UBS Financial Services Inc. and RBC Capital Markets, LLC
|
| Fees: | 1.5%
|
| Cusip: | 78010Y679
|
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