Published on 7/18/2014 in the Prospect News Structured Products Daily.
New Issue: RBC prices $5.39 million contingent coupon callable yield notes tied to Facebook
By Toni Weeks
San Luis Obispo, Calif., July 18 – Royal Bank of Canada priced $5.39 million of contingent coupon callable yield notes due July 21, 2016 linked to the common stock of Facebook, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes will pay a coupon at a rate of 10.16% per year if Facebook stock closes at or above the barrier level, 63% of the initial share price, on the observation date for that quarter.
If the final share price is greater than or equal to the 63% barrier level, the payout at maturity will be par. Otherwise, investors will receive a number of shares equal to $1,000 divided by the initial share price or, at the issuer’s option, the cash value of those shares.
The notes are callable at par on any interest payment date.
RBC Capital Markets, LLC and Barclays are the agents.
| Issuer: | Royal Bank of Canada
|
| Issue: | Contingent coupon callable yield notes
|
| Underlying stock: | Facebook, Inc. (Nasdaq: FB)
|
| Amount: | $5,385,000
|
| Maturity: | July 21, 2016
|
| Coupon: | 10.16% per year, payable quarterly, if stock closes at or above barrier level on quarterly observation date
|
| Price: | Par
|
| Payout at maturity: | Par unless stock finishes below knock-in level, in which case a number of Facebook shares equal to $1,000 divided by initial stock price or, at issuer’s option, the cash value of those shares
|
| Call option: | At par plus contingent coupon, if any, on any interest payment date beginning Oct. 22
|
| Initial price: | $66.43
|
| Barrier/knock-in level: | $41.85, 63% of initial price
|
| Pricing date: | July 17
|
| Settlement date: | July 22
|
| Agents: | RBC Capital Markets, LLC and Barclays
|
| Fees: | 1.75%
|
| Cusip: | 78010UP43
|
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