By Wendy Van Sickle
Columbus, Ohio, Nov. 20 – Royal Bank of Canada priced $2 million phoenix autocallable notes with memory coupon due Dec. 4, 2019 linked to Facebook, Inc. shares, according to a 424B2 filing with the Securities and Exchange Commission.
If the stock closes at or above the barrier level, 75% of the initial level, on a quarterly observation date, the notes will pay a contingent coupon for that quarter at an annualized rate of 14.6%, plus any previously unpaid contingent interest payments.
The notes will be called at par if Facebook shares close at or above the initial share price on any observation date other than the final date.
The payout at maturity will be par plus the final coupon and any previously unpaid coupons unless the stock finishes below the 75% trigger level, in which case investors will lose 1% for each 1% decline of the stock from its initial level.
JPMorgan Chase Bank, NA and J.P. Morgan Securities LLC are the agents.
| Issuer: | Royal Bank of Canada
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| Issue: | Phoenix autocallable notes with memory coupon
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| Underlying stock: | Facebook, Inc.
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| Amount: | $2 million
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| Maturity: | Dec. 4, 2019
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| Coupon: | 14.6% annualized, plus any previously unpaid coupons, if index closes at or above barrier level on quarterly observation date
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| Price: | Par
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| Payout at maturity: | Par plus contingent coupon and previously unpaid coupons if index finishes at or above trigger level; otherwise, par plus index return, with full exposure to losses
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| Call: | At par plus contingent coupon and previously unpaid coupons if index closes at or above initial level on a quarterly observation date
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| Initial price: | $139.53
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| Barrier/trigger price: | $104.65, 75% of initial price
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| Pricing date: | Nov. 16
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| Settlement date: | Nov. 21
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| Agent: | J.P. Morgan Securities LLC
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| Fees: | 1%
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| Cusip: | 78013XSU3
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