By William Gullotti
Buffalo, N.Y., March 9 – Royal Bank of Canada priced $2 million of phoenix autocallable notes with memory coupon due March 21, 2023 linked to FedEx Corp. shares, according to a 424B2 filing with the Securities and Exchange Commission.
If the stock closes at or above the barrier level, 70% of the initial level, on a quarterly observation date, the notes will pay a contingent coupon for that quarter at an annualized rate of 12.52%, plus any previously unpaid contingent interest payments.
The notes will be called at par plus coupon if the 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 all unpaid coupons unless the stock finishes below the 70% trigger level, in which case investors will receive a number of shares equal to $10,000 divided by the initial price or, at the issuer’s option, the cash equivalent.
RBC Capital Markets, LLC is the agent. JPMorgan Chase Bank, NA and J.P. Morgan Securities LLC are acting as placement agents.
| Issuer: | Royal Bank of Canada
|
| Issue: | Phoenix autocallable notes with memory coupon
|
| Underlying stock: | FedEx Corp.
|
| Amount: | $2 million
|
| Maturity: | March 21, 2023
|
| Coupon: | 12.52% annualized, paid quarterly if stock closes at or above barrier level on quarterly observation date; coupon payment events will automatically include any previously unpaid coupons
|
| Price: | Par of $10,000
|
| Payout at maturity: | Par plus all unpaid coupons if stock finishes at or above trigger level; otherwise, investors will receive 44.72 shares per note or, at the issuer’s option, the cash equivalent
|
| Call: | At par plus coupon if stock closes at or above initial level on a quarterly observation date
|
| Initial price: | $223.60
|
| Barrier/trigger price: | $156.52; 70% of initial price
|
| Strike date: | March 3
|
| Pricing date: | March 4
|
| Settlement date: | March 9
|
| Agent: | RBC Capital Markets, LLC,
|
| Placement agents: | JPMorgan Chase Bank, NA and J.P. Morgan Securities LLC
|
| Fees: | 1%
|
| Cusip: | 78015QAH4
|
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
