By Jennifer Chiou
New York, Dec. 3 - Royal Bank of Canada priced $22,765,310 of contingent income autocallable securities due Dec. 4, 2016 linked to Facebook Inc. shares, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon of 3.5125% if Facebook stock closes at or above the 65% barrier level on a determination date for that quarter.
The notes will be called at par plus the contingent payment if the shares close at or above the initial level on any of the first three quarterly determination dates.
If the notes are not called, the payout at maturity will be par plus the contingent payment unless the stock finishes below the barrier level, in which case the payout will be a number of Facebook shares equal to the principal amount of notes divided by the initial share price or, at the issuer's option, the cash equivalent.
RBC Capital Markets, LLC is the agent with Morgan Stanley Wealth Management as dealer.
| Issuer: | Royal Bank of Canada
|
| Issue: | Contingent income autocallable securities
|
| Underlying stock: | Facebook Inc. (Symbol: FB)
|
| Amount: | $22,765,310
|
| Maturity: | Dec. 4, 2016
|
| Coupon: | 3.5125% if stock closes at or above barrier level on quarterly review date
|
| Price: | Par of $10
|
| Payout at maturity: | Par plus coupon if stock falls by up to barrier level; otherwise, 0.2127 Facebook shares
|
| Initial price: | $47.01
|
| Barrier level: | $30.56, 65% of initial share price
|
| Call: | Par plus contingent payment if shares close at or above initial level on first three quarterly determination dates
|
| Pricing date: | Nov. 29
|
| Settlement date: | Dec. 4
|
| Agent: | RBC Capital Markets, LLC with Morgan Stanley Wealth Management as dealer
|
| Fees: | 1.5%
|
| Cusip: | 78010Y158
|
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