Published on 7/10/2017 in the Prospect News Structured Products Daily.
New Issue: RBC prices $215,000 contingent coupon autocallables tied to tech stocks
By Susanna Moon
Chicago, July 10 – Royal Bank of Canada priced $215,000 of autocallable contingent coupon barrier notes due July 2, 2020 linked to the commons 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 its 50% coupon barrier on the observation date for that quarter.
The notes will be called if each stock closes at or above its initial level on any interest payment date.
The payout at maturity will be par plus the final coupon unless any stock finishes below its 50% trigger 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: | Autocallable contingent coupon barrier notes
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| Underlying stock: | Amazon.com, Inc. (Symbol: AMZN), Facebook, Inc. (Symbol: FB), Alphabet Inc. (Symbol: GOOGL) and Netflix Inc. (Symbol: NFLX)
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| Amount: | $215,000
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| Maturity: | July 2, 2020
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| Coupon: | 9.5%, payable quarterly if each stock closes at or above 50% coupon barrier on observation date for that quarter
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| Price: | Par
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| Payout at maturity: | Par plus final coupon unless any stock finishes below 50% trigger level, in which case 1% loss for each 1% decline of the worst performing stock
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| Call: | At par if each stock closes at or above its initial level on any interest payment date beginning Dec. 11, 2017
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| Initial levels: | $976.78 for Amazon, $150.58 for Facebook, $948.09 for Alphabet and $151.03 for Netflix
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| Trigger levels: | $488.39 for Amazon, $75.29 for Facebook, $474.05 for Alphabet and $75.52 for Netflix, 50% of initial levels
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| Pricing date: | June 27
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| Settlement date: | June 30
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| Agents: | RBC Capital Markets, LLC
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| Fees: | 2.25%
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| Cusip: | 78012KZ34
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