By Toni Weeks
San Luis Obispo, Calif., Jan. 13 – Royal Bank of Canada priced $2.62 million of 0% contingent absolute return autocallable optimization securities due Jan. 19, 2016 linked to the common stock of Facebook, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will be called at par plus an annualized call premium of 11.1% if Facebook stock closes at or above the initial share price on any quarterly observation date.
If the notes are not called and the final share price is greater than or equal to the trigger price, 75% of the initial share price, the payout at maturity will be par plus the absolute value of the stock return. Otherwise, investors will be fully exposed to the stock decline.
UBS Financial Services Inc. and RBC Capital Markets, LLC are the agents.
| Issuer: | Royal Bank of Canada
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| Issue: | Contingent absolute return autocallable optimization securities
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| Underlying stock: | Facebook, Inc. (Symbol: FB)
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| Amount: | $2.62 million
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| Maturity: | Jan. 19, 2016
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| Coupon: | 0%
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| Price: | Par of $10.00
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| Payout at maturity: | If final share price is greater than or equal to trigger price, par plus absolute value of stock return; otherwise, full exposure to stock decline
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| Call: | At par plus 11.1% per year if Facebook stock closes at or above initial share price on any quarterly observation date
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| Initial share price: | $77.74
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| Trigger price: | $58.31, 75% of initial share price
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| Pricing date: | Jan. 9
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| Settlement date: | Jan. 14
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| Agents: | UBS Financial Services Inc. and RBC Capital Markets, LLC
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| Fees: | 1.5%
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| Cusip: | 780082210
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