By Kiku Steinfeld
Chicago, Dec. 20 – Royal Bank of Canada priced $1.26 million of callable contingent coupon barrier notes due Dec. 18, 2024 linked to the common stock of Ford Motor Co., according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes will pay a contingent coupon at an annual rate of 12.5% if the stock closes at or above the 65% coupon barrier price on the observation date for that quarter.
The notes may be called at par on any quarterly coupon payment date after six months.
The payout at maturity will be par unless the stock finishes below the 65% barrier price, in which case investors will be fully exposed to all losses of the stock.
RBC Capital Markets, LLC is the agent.
| Issuer: | Royal Bank of Canada
|
| Issue: | Callable contingent coupon barrier notes
|
| Underlying stock: | Ford Motor Co.
|
| Amount: | $1,264,000
|
| Maturity: | Dec. 18, 2024
|
| Coupon: | 12.5%, payable quarterly if stock closes at or above coupon barrier price on observation date for that quarter
|
| Price: | Par
|
| Payout at maturity: | Par unless stock finishes below trigger price, in which case exposure to losses
|
| Call option: | At par on any quarterly coupon payment date after six months
|
| Initial price: | $20.43
|
| Coupon/barrier price: | $12.26, 65% of initial price
|
| Pricing date: | Dec. 13
|
| Settlement date: | Dec. 16
|
| Agent: | RBC Capital Markets, LLC
|
| Fees: | 1%
|
| Cusip: | 78016FAJ3
|
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