Published on 5/22/2017 in the Prospect News Structured Products Daily.
New Issue: RBC prices $1.69 million contingent coupon barrier autocallables tied to stocks
By Susanna Moon
Chicago, May 22 – Royal Bank of Canada priced $1.69 million of autocallable contingent coupon barrier notes due May 20, 2020 linked to 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.
The notes will pay a contingent quarterly coupon at an annual rate of 9.6% if each stock closes at or above its 50% coupon barrier on the observation date for that quarter.
The notes will be automatically called at par if each stock closes at or above its initial price on any observation date.
The payout at maturity will be par unless any stock finishes below the 50% trigger level, in which case investors will receive a number shares of the worse performing stock equal to $1,000 divided by the initial share price.
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: | $1,692,000
|
| Maturity: | May 20, 2020
|
| Coupon: | 9.6%, payable quarterly if each stock closes at or above 50% coupon barrier on observation date for that quarter
|
| Price: | Par
|
| Payout at maturity: | Par unless any stock finishes below trigger level, in which case shares of worse performing stock equal to $1,000 divided by the initial share price
|
| Call: | At par if each stock closes at or above initial price on any observation date
|
| Initial levels: | $957.97 for Amazon, $150.19 for Facebook, $959.22 for Alphabet and $160.02 for Netflix
|
| Trigger levels: | $478.99 for Amazon, $75.10 for Facebook, $479.61 for Alphabet and $80.01 for Netflix; 50% of initial levels
|
| Pricing date: | May 15
|
| Settlement date: | May 18
|
| Agents: | RBC Capital Markets, LLC
|
| Fees: | 2.25%
|
| Cusip: | 78012KR90
|
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