By Jennifer Chiou
New York, March 2 – Royal Bank of Canada priced $1,513,000 of phoenix autocallable notes due March 16, 2016 linked to Ford Motor Co. stock, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annual rate of 9.52% if Ford stock closes at or above the 75% barrier level on an observation date for that quarter.
The notes will be called at par plus the contingent coupon if the shares close at or above the initial price on any quarterly observation date.
The payout at maturity will be par plus the contingent coupon unless the stock finishes below the 75% trigger level, in which case the payout will be a number of Ford shares equal to $1,000 divided by the initial share price.
RBC Capital Markets, LLC is the underwriter with JPMorgan Chase Bank, NA and J.P. Morgan Securities LLC as placement agents.
| Issuer: | Royal Bank of Canada
|
| Issue: | Phoenix autocallable notes
|
| Underlying shares: | Ford Motor Co. (Symbol: F)
|
| Amount: | $1,513,000
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| Maturity: | March 16, 2016
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| Coupon: | 9.52% per year, payable quarterly if stock closes at or above barrier level on observation date for that quarter
|
| Price: | Par
|
| Payout at maturity: | Par plus contingent coupon if stock finishes at or above trigger price; otherwise, Ford shares equal to $1,000 divided by the initial share price
|
| Call: | At par plus contingent coupon if Ford shares close at or above initial price on any quarterly observation date
|
| Initial share price: | $16.34
|
| Barrier level: | $13.07, 80% of initial share price
|
| Pricing date: | Feb. 27
|
| Settlement date: | March 4
|
| Underwriter: | RBC Capital Markets, LLC
|
| Fees: | 1%
|
| Cusip: | 78012KBX4
|
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