Published on 6/15/2017 in the Prospect News Structured Products Daily.
New Issue: RBC prices $2.12 million contingent coupon barrier autocallables on four tech stocks
By Wendy Van Sickle
Columbus, Ohio, June 15 – Royal Bank of Canada priced $1.2 million of autocallable contingent coupon barrier notes due June 12, 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 9.5% if each stock closes at or above the 50% coupon barrier on the observation date for that quarter.
The notes will be called at par if each stock closes at or above its initial price on any quarterly 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 of shares of the worst performing stock equal to $1,000 principal amount divided by the initial share price, or, at the issuer’s option, the cash equivalent.
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), Alphabet Inc. (Symbol: GOOGL), Netflix Inc. (Symbol: NFLX)
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| Amount: | $2,115,000
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| Maturity: | June 12, 2020
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| Coupon: | 9.5%, payable quarterly if each stock closes at or above 75% coupon barrier on observation date for that quarter
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| Price: | Par
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| Payout at maturity: | Par unless any stock finishes below trigger level, in which case shares reflecting 1% loss for each 1% decline of worst performing stock
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| Call: | At par if each stock closes at or above initial price on any observation date
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| Initial prices: | $978.31 for Amazon, $149.60 for Facebook, $970.12 for Alphabet and $158.03 for Netflix
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| Trigger levels: | $489.16 for Amazon, $74.80 for Facebook, $485.06 for Alphabet and $79.02 for Netflix; 50% of initial price
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| Pricing date: | June 9
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| Settlement date: | June 14
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| Agents: | RBC Capital Markets, LLC
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| Fees: | 2.25%
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| Cusip: | 78012KU62
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