By Marisa Wong
Madison, Wis., Oct. 9 – Royal Bank of Canada priced $4.27 million of contingent income autocallable securities due Oct. 8, 2015 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 2.663% if Facebook stock closes at or above the 75% downside threshold level on the determination date for that quarter.
The notes will be called at par plus the contingent coupon if the stock closes at or above its initial level on any of the first three determination dates.
If the notes are not called and Facebook stock finishes at or above the downside threshold level, the payout at maturity will be par plus the contingent payment.
Otherwise, investors will receive a number of shares of Facebook stock equal to $10 divided by the initial share price or, at the issuer’s option, the cash value of those shares.
RBC Capital Markets, LLC is the agent with Morgan Stanley Wealth Management handling distribution.
| Issuer: | Royal Bank of Canada
|
| Issue: | Contingent income autocallable securities
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| Underlying stock: | Facebook, Inc. (Symbol: FB)
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| Amount: | $4,274,680
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| Maturity: | Oct. 8, 2015
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| Contingent coupon: | 10.652% annualized for each quarter that Facebook stock closes at or above downside threshold level on determination date for that quarter
|
| Price: | Par
|
| Payout at maturity: | If stock finishes at or above downside threshold level, par plus contingent payment; otherwise 0.1291Facebook shares or cash equivalent
|
| Call: | At par plus contingent payment if stock closes at or above initial level on any of first three quarterly determination dates
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| Initial share price: | $77.44
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| Downside threshold: | $58.08, 75% of initial share price
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| Pricing date: | Oct. 3
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| Settlement date: | Oct. 8
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| Agent: | RBC Capital Markets, LLC with Morgan Stanley Smith Barney LLC handling distribution
|
| Fees: | 1.75%
|
| Cusip: | 78011Y462
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