By Marisa Wong
Madison, Wis., Feb. 3 - Royal Bank of Canada priced $2.56 million of contingent income autocallable securities due Feb. 5, 2015 linked to the common stock of Facebook, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon of 2.35% if Facebook stock closes at or above the downside threshold level, 65% of the initial share price, on any quarterly determination date.
The notes will be redeemed at par of $10 plus the contingent coupon if the stock closes at or above the initial share price on any of the first three quarterly determination dates.
If the notes are not called and the final share price is greater than or equal to the downside threshold level, the payout at maturity will be par plus the contingent coupon.
Otherwise, the payout will be a number of Facebook shares equal to $10 divided by the initial share price or, at the issuer's option, a cash amount equal to the value of those shares.
RBC Capital Markets, LLC is the agent with Morgan Stanley Wealth Management handling distribution.
Issuer: | Royal Bank of Canada
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Issue: | Contingent income autocallable securities
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Underlying stock: | Facebook, Inc. (Symbol: FB)
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Amount: | $2,559,500
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Maturity: | Feb. 5, 2015
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Coupon: | 9.4% per year, payable quarterly if Facebook stock closes at or above downside threshold level on any quarterly determination date
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Price: | Par of $10
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Payout at maturity: | If final share price is greater than or equal to downside threshold level, par plus contingent coupon; otherwise, 0.1598 Facebook shares or, at the issuer's option, a cash amount equal to value of those shares
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Call: | At par plus contingent coupon if stock closes at or above initial share price on any of first three quarterly determination dates
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Initial price: | $62.57
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Downside threshold price: $40.67, 65% of initial price
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Pricing date: | Jan. 31
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Settlement date: | Feb. 5
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Agent: | RBC Capital Markets, LLC with Morgan Stanley Wealth Management handling distribution
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Fees: | 1.5%
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Cusip: | 78010Y521
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