Published on 3/12/2020 in the Prospect News Structured Products Daily.
New Issue: RBC prices $2.97 million autocallable contingent coupon barrier notes on Facebook
By Sarah Lizee
Olympia, Wash., March 12 – Royal Bank of Canada priced $2.97 million of autocallable contingent coupon barrier notes due March 3, 2022 linked to the common stock of Facebook, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes pay a contingent coupon at the rate of 9.2% per year if the stock closes at or above its trigger price, 75% of its initial price, on the observation date for that quarter.
The notes will be called at par if the stock closes at or above its initial share price on any quarterly observation date after six months.
If the notes are not called, the payout at maturity will be par unless the stock finishes below its trigger price, in which case investors will receive a number of the shares equal to the principal divided by the initial share price or, at the issuer’s option, the cash equivalent.
RBC Capital Markets, LLC is the underwriter.
| Issuer: | Royal Bank of Canada
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| Issue: | Autocallable contingent coupon barrier notes
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| Underlying stock: | Facebook, Inc.
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| Amount: | $2,973,000
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| Maturity: | March 3, 2022
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| Coupon: | 9.2%, payable quarterly if stock closes at or above trigger price on observation date for that quarter
|
| Price: | Par
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| Payout at maturity: | Par unless stock finishes below trigger price, in which case a number of shares equal to the principal divided by initial share price, or, at issuer’s option, cash equivalent
|
| Call: | At par if stock closes at or above initial share price on any quarterly observation date after six months
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| Initial share price: | $192.47
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| Trigger price: | $144.35, 75% of initial share price
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| Pricing date: | Feb. 28
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| Settlement date: | March 4
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| Underwriter: | RBC Capital Markets, LLC
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| Fees: | 1.75%
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| Cusip: | 78013GUT0
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