By Marisa Wong
Madison, Wis., Feb. 6 – Royal Bank of Canada priced $1.9 million of trigger phoenix autocallable notes with memory coupon due Aug. 12, 2016 linked to the worst performing of three stocks, according to a 424B2 filing with the Securities and Exchange Commission.
The reference stocks are eBay Inc., Facebook, Inc. and Yahoo! Inc.
If each stock closes at or above its coupon barrier – 55% of the initial price – on a quarterly observation date, the notes will pay a contingent coupon for that quarter at an annual rate of 7.1% plus an amount equal to any memory coupon.
The memory coupon is the product of the contingent coupon times the number of contingent coupon payments that were previously unpaid on the respective coupon payment dates because at least one stock closed below its coupon barrier on an observation date.
The notes will be called at par plus the contingent coupon if each stock closes at or above its initial price on any quarterly observation date beginning Aug. 3.
The payout at maturity will be par plus the contingent coupon unless any stock finishes below its barrier level, in which case investors will be fully exposed to any losses of the worst-performing stock.
RBC Capital Markets, LLC is the underwriter.
| Issuer: | Royal Bank of Canada
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| Issue: | Trigger phoenix autocallable notes
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| Underlying units/stocks: | eBay Inc. (Symbol: EBAY), Facebook, Inc. (Symbol: FB) and Yahoo! Inc. (Symbol: YHOO)
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| Amount: | $1.9 million
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| Maturity: | Aug. 12, 2016
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| Coupon: | 7.1% per year plus any memory coupon if each stock closes at or above its barrier price on a quarterly observation date; memory coupon is product of contingent coupon times number of contingent coupon payments that were previously unpaid on respective coupon payment dates because at least one stock closed below its coupon barrier on an observation date
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| Price: | Par
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| Payout at maturity: | If each stock finishes at or above barrier level, par plus contingent coupon; otherwise, full exposure to losses of worst-performing stock
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| Call: | At par plus contingent coupon if each stock closes at or above its initial price on any quarterly observation date beginning Aug. 3
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| Initial prices: | $53.71 for eBay, $74.99 for Facebook and $44.69 for Yahoo! Inc.
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| Barrier prices: | $29.54 for eBay, $41.24 for Facebook and $24.58 for Yahoo! Inc.; 55% of initial prices
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| Pricing date: | Feb. 2
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| Settlement date: | Feb. 12
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| Underwriter: | RBC Capital Markets, LLC
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| Fees: | None
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| Cusip: | 78010UH75
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