By William Gullotti
Buffalo, N.Y., Jan. 6 – Royal Bank of Canada priced $1 million issuer callable contingent coupon barrier notes due June 26, 2025 tied to the shares of FedEx Corp., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a quarterly contingent coupon at an annual rate of 11.6% if the stock closes at or above its 50% coupon barrier on the corresponding observation date.
The notes may be called at par plus any coupon due at the option of the issuer on any quarterly observation date after one year.
Investors will receive par plus the contingent coupon if the final level of the stock is above its 50% trigger level.
Otherwise, investors will lose 1% for each 1% decline of the stock from its initial price.
RBC Capital Markets, LLC is the underwriter.
| Issuer: | Royal Bank of Canada
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| Issue: | Issuer callable contingent coupon barrier notes
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| Underlying stock: | FedEx Corp.
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| Amount: | $1 million
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| Maturity: | June 26, 2025
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| Coupon: | 11.6% per year, paid quarterly if stock closes at or above coupon barrier on the related observation date
|
| Price: | Par
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| Payout at maturity: | Par plus contingent coupon unless stock finishes below trigger level, in which case full exposure to losses of stock
|
| Call option: | At par plus any coupon due at the option of the issuer on any quarterly observation date after one year
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| Initial price: | $175.93
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| Coupon barrier level: | $87.97; 50% of initial level
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| Trigger level: | $87.97; 50% of initial level
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| Pricing date: | Dec. 23
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| Settlement date: | Dec. 29
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| Agent: | RBC Capital Markets, LLC
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| Fees: | 0.75%
|
| Cusip: | 78016HJ84
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