By William Gullotti
Buffalo, N.Y., July 8 – Royal Bank of Canada priced $2.69 million of phoenix autocallable notes with memory coupon due May 31, 2023 linked to Facebook, Inc. shares, according to a 424B2 filing with the Securities and Exchange Commission.
If the stock closes at or above the barrier level, 68.4% of the initial level, on a quarterly observation date, the notes will pay a contingent coupon at an annualized rate of 8%, plus any previously unpaid contingent interest payments.
The notes will be called at par plus coupon if the shares close at or above the initial share price on any quarterly observation date other than the final date.
The payout at maturity will be par plus all previously unpaid coupons unless the stock finishes below the 68.4% trigger level, in which case investors will be exposed to the decline of the stock from its initial level.
RBC Capital Markets, LLC is the agent. JPMorgan Chase Bank, NA and J.P. Morgan Securities LLC are acting as placement agents.
| Issuer: | Royal Bank of Canada
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| Issue: | Phoenix autocallable notes with memory coupon
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| Underlying stock: | Facebook, Inc.
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| Amount: | $2,690,000
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| Maturity: | May 31, 2023
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| Coupon: | 8% annualized, paid quarterly, plus any previously unpaid coupons if stock closes at or above barrier level on quarterly observation date
|
| Price: | Par
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| Payout at maturity: | Par plus all previously unpaid coupons if stock finishes at or above trigger level; otherwise, investors will be exposed to the decline of the stock from its initial level
|
| Call: | At par plus coupon if stock closes at or above initial level on a quarterly observation date
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| Initial price: | $327.79
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| Barrier/trigger price: | $224.21; 68.4% of initial price
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| Pricing date: | May 25
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| Settlement date: | May 28
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| Agent: | RBC Capital Markets, LLC,
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| Placement agents: | JPMorgan Chase Bank, NA and J.P. Morgan Securities LLC
|
| Fees: | 1.5%
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| Cusip: | 78016E2Q9
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