By Angela McDaniels
Tacoma, Wash., Jan. 31 – Royal Bank of Canada priced $3.7 million of phoenix autocallable notes with memory coupon due Feb. 14, 2020 linked to the common stock of Facebook, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
If Facebook shares close at or above the trigger price, 75% of the initial share price, on a quarterly observation date, the notes will pay a contingent coupon plus any previously unpaid contingent coupons. If Facebook shares close below the trigger price, no coupon will be paid that quarter. The contingent coupon rate is 14.3% per year.
The notes will be automatically called at par if Facebook shares close at or above the initial share price on May 16, 2019, Aug. 15, 2019 or Nov. 14, 2019.
The payout at maturity will be par unless Facebook shares finish below the trigger price, in which case investors will lose 1% for every 1% that the stock declines from its initial price.
JPMorgan Chase Bank NA and J.P. Morgan Securities LLC are the agents.
| Issuer: | Royal Bank of Canada
|
| Issue: | Phoenix autocallable notes with memory coupon feature
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| Underlying stock: | Facebook Inc. (Symbol: FB)
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| Amount: | $3.7 million
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| Maturity: | Feb. 14, 2020
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| Coupon: | 14.3% per year plus any previously unpaid contingent coupons if Facebook shares close at or above trigger price on applicable quarterly observation date
|
| Price: | Par
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| Payout at maturity: | Par unless Facebook shares finish below trigger price, in which case full exposure to stock’s decline
|
| Call: | Automatically at par if Facebook shares close at or above initial price on May 16, 2019, Aug. 15, 2019 or Nov. 14, 2019
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| Initial share price: | $144.19
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| Trigger price: | $108.14, 75% of initial share price
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| Final share price: | Average of closing share prices on five trading days ending Feb. 11, 2020
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| Pricing date: | Jan. 29
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| Settlement date: | Feb. 1
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| Agents: | JPMorgan Chase Bank NA and J.P. Morgan Securities LLC
|
| Fees: | 1%
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| Cusip: | 78013XYK8
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