Published on 4/17/2017 in the Prospect News Structured Products Daily.
New Issue: RBC prices $2.24 million contingent coupon autocallables linked to tech stocks
By Angela McDaniels
Tacoma, Wash., April 17 – Royal Bank of Canada priced $2.24 million of autocallable contingent coupon barrier notes due April 16, 2020 linked to the least performing of the common stocks of Amazon.com, Inc., Facebook, Inc., Alphabet Inc. and Netflix Inc., according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes pay a contingent coupon at the rate of 10.4% per year if each stock closes at or above its trigger price, 50% of its initial price, on the observation date for that quarter.
Beginning April 13, 2018, 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 any stock finishes below its trigger price, in which case investors will receive a number of shares of the least-performing stock equal to $1,000 divided by its initial share price or, at the issuer’s option, an amount in cash equal to the value of those shares.
RBC Capital Markets, LLC is the underwriter.
| Issuer: | Royal Bank of Canada
|
| Issue: | Autocallable contingent coupon barrier notes
|
| Underlying stocks: | Amazon.com, Inc. (Symbol: AMZN), Facebook, Inc. (Symbol: FB), Alphabet Inc. (Symbol: GOOGL) and Netflix Inc. (Symbol: NFLX)
|
| Amount: | $2,235,000
|
| Maturity: | April 16, 2020
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| Coupon: | 10.4% per year, payable quarterly if each stock closes at or above trigger price on observation date for that quarter
|
| Price: | Par
|
| Payout at maturity: | Par unless any stock finishes below trigger price, in which case number of shares of least-performing stock equal to $1,000 divided by its initial share price or, at issuer’s option, amount in cash equal to value of those shares
|
| Call: | Beginning April 13, 2018, at par if each stock closes at or above initial share price on any quarterly observation date
|
| Initial share prices: | $884.67 for Amazon, $139.39 for Facebook, $840.18 for Alphabet and $142.92 for Netflix
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| Trigger prices: | $442.34 for Amazon, $69.70 for Facebook, $420.09 for Alphabet and $71.46 for Netflix; 50% of initial prices
|
| Pricing date: | April 13
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| Settlement date: | April 19
|
| Underwriter: | RBC Capital Markets, LLC
|
| Fees: | 2.25%
|
| Cusip: | 78013GDQ5
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