Published on 11/2/2015 in the Prospect News Structured Products Daily.
New Issue: RBC prices $3 million 8.5% autocallable reverse convertibles on two stocks, fund
New York, Nov. 2 – Royal Bank of Canada priced $3 million of 9.6% autocallable reverse convertible notes due Nov. 3, 2016 linked to the worst performing of Blackstone Group LP, Honeywell International Inc. and Financial Select Sector SPDR fund, according to a 424B2 filing with the Securities and Exchange Commission.
Interest is payable monthly.
The notes will be called at par plus accrued interest if each component closes at or above its initial price on any quarterly call date.
The payout at maturity will be par in cash unless the price of any component falls below its barrier price, 65% of its initial price, in which case the payout will be a number of shares of the worst performing component equal to $1,000 divided by the initial price.
RBC Capital Markets, LLC is the agent.
| Issuer: | Royal Bank of Canada
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| Issue: | Autocallable reverse convertible notes
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| Underlying: | Blackstone Group LP (Symbol: BX), Honeywell International Inc. (Symbol: HON) and Financial Select SPDR fund (Symbol: XLF)
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| Amount: | $3 million
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| Maturity: | Nov. 3, 2016
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| Coupon: | 9.6%, payable monthly
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| Price: | Par
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| Payout at maturity: | Par in cash unless any component finishes below barrier price, in which case number of shares of the worst performing component equal to $1,000 divided by the initial price
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| Call: | At par plus accrued interest on any quarterly call date if each stock closes at or above initial price
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| Call dates: | Jan. 29, 2016, April 29, 2016, July 29, 2016 and Oct. 31, 2016
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| Initial prices: | $34.41 for Blackstone, $102.71 for Honeywell, $24.42 for ETF
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| Barrier levels: | $22.37 for Blackstone, $66.76 for Honeywell, $15.87 for ETF; 65% of initial levels
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| Pricing date: | Oct. 29
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| Settlement date: | Nov. 3
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| Agent: | RBC Capital Markets, LLC
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| Fees: | 0.5%
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| Cusip: | 78013GAJ4
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