By William Gullotti
Buffalo, N.Y., Aug. 2 – Royal Bank of Canada priced $600,000 of phoenix autocallable notes with memory coupon due June 22, 2022 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, 75% of the initial level, on a quarterly observation date, the notes will pay a contingent coupon for that quarter at an annualized rate of 10.04%, 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 observation date other than the final date.
The payout at maturity will be par plus the final coupon unless the stock finishes below the 75% trigger level, in which case investors will be exposed to the decline of the stock.
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: | $600,000
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| Maturity: | June 22, 2022
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| Coupon: | 10.04% annualized, paid quarterly if stock closes at or above barrier level on quarterly observation date; coupon payments will include any previously unpaid coupons
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| Price: | Par
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| Payout at maturity: | Par plus coupon if stock finishes at or above trigger level; otherwise, investors will be exposed to the decline of the stock
|
| Call: | At par plus coupon if stock closes at or above initial level on a quarterly observation date
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| Initial price: | $330.35
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| Barrier/trigger price: | $247.76; 75% of initial price
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| Pricing date: | June 4
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| Settlement date: | June 9
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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
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| Fees: | 1%
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| Cusip: | 78016E3Q8
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