By Angela McDaniels
Tacoma, Wash., Dec. 16 – Royal Bank of Canada priced $721,000 of trigger phoenix autocallable optimization securities due Dec. 17, 2018 linked to the common stock of Foot Locker, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
If Foot Locker stock closes at or above the trigger price, 64.25% of the initial share price, on a quarterly observation date, the issuer will pay a contingent coupon for that quarter at the rate of 9% per year. Otherwise, no coupon will be paid that quarter.
Beginning June 13, 2016, the notes will be called at par of $10 plus the contingent coupon if the shares close at or above the initial price on a quarterly observation date.
If the notes are not called and Foot Locker shares finish at or above the trigger price, the payout at maturity will be par plus the contingent coupon. Otherwise, investors will be exposed to the share price decline from the initial price.
UBS Financial Services Inc. and RBC Capital Markets, LLC are the underwriters.
| Issuer: | Royal Bank of Canada
|
| Issue: | Trigger phoenix autocallable optimization securities
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| Underlying stock: | Foot Locker, Inc. (Symbol: FL)
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| Amount: | $721,000
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| Maturity: | Dec. 17, 2018
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| Coupon: | 9% per year, payable quarterly if stock closes at or above trigger price on observation date for that quarter
|
| Price: | Par of $10.00
|
| Payout at maturity: | Par plus contingent coupon if Foot Locker shares finish at or above trigger price; otherwise, par plus stock return
|
| Call: | Automatically at par plus contingent coupon if Foot Locker shares close at or above initial price on any quarterly observation date from June 13, 2016 onward
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| Initial share price: | $66.40
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| Trigger price: | $42.66, 64.25% of initial share price
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| Pricing date: | Dec. 11
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| Settlement date: | Dec. 16
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| Underwriters: | UBS Financial Services Inc. and RBC Capital Markets, LLC
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| Fees: | 2%
|
| Cusip: | 78013C385
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