Published on 11/7/2016 in the Prospect News Structured Products Daily.
New Issue: RBC prices $1.4 million contingent coupon autocallables on three stocks
By Marisa Wong
Morgantown, W.Va., Nov. 7 – Royal Bank of Canada priced $1.4 million of autocallable contingent coupon barrier notes due Oct. 31, 2019 linked to the least performing of the common stocks of Amazon.com, Inc., Facebook, Inc. and Alphabet Inc., according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes pay a contingent coupon at an annual rate of 15% if each stock closes at or above its barrier price, 70% of its initial price, on the observation date for that quarter.
The notes will be called at par if each stock closes at or above its initial share price on any quarterly observation date.
The payout at maturity will be par unless the least-performing stock finishes below its trigger price, in which case investors will lose 1% for every 1% decline of the least-performing stock.
RBC Capital Markets, LLC is the underwriter.
| Issuer: | Royal Bank of Canada
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| Issue: | Autocallable contingent coupon barrier notes
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| Underlying stocks: | Amazon.com, Inc. (Symbol: AMZN), Facebook, Inc. (Symbol: FB) and Alphabet Inc. (Symbol: GOOG)
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| Amount: | $1.4 million
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| Maturity: | Nov. 2, 2018
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| Coupon: | 15%, payable quarterly if each stock closes at or above barrier price on observation date for that quarter
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| Price: | Par
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| Payout at maturity: | Par unless least-performing stock finishes below trigger price, in which case 1% loss for every 1% decline of least-performing stock
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| Initial share prices: | $821.57 for Amazon, $129.69 for Facebook, $798.30 for Alphabet
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| Barrier/trigger prices: | $575.10 for Amazon, $90.78 for Facebook, $558.81 for Alphabet; 70% of initial prices
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| Pricing date: | Oct. 27
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| Settlement date: | Oct. 31
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| Underwriter: | RBC Capital Markets, LLC
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| Fees: | 2.1%
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| Cusip: | 78012KUZ8
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