Published on 5/9/2017 in the Prospect News Structured Products Daily.
New Issue: RBC prices $2.33 million contingent coupon barrier autocallables tied to two stocks
By Susanna Moon
Chicago, May 9 – Royal Bank of Canada priced $2.33 million of autocallable contingent coupon barrier notes due May 5, 2022 linked to the common stocks of Ford Motor Co. and General Motors Corp., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annual rate of 9.9% if each stock closes at or above the 60% coupon barrier on the observation date for that quarter.
The notes will be called at par if each stock closes at or above its initial price on any quarterly observation date beginning Nov. 2, 2017.
The payout at maturity will be par unless either stock finishes below the 60% trigger level, in which case investors will lose 1% for each 1% decline of the worse performing stock.
RBC Capital Markets, LLC is the underwriter.
| Issuer: | Royal Bank of Canada
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| Issue: | Autocallable contingent coupon barrier notes
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| Underlying stocks: | Ford Motor Co. (Symbol: F), General Motors Corp. (Symbol: GM)
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| Amount: | $2,328,000
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| Maturity: | May 5, 2022
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| Coupon: | 9.9%, payable quarterly if each stock closes at or above 60% coupon barrier on observation date for that quarter
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| Price: | Par
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| Payout at maturity: | Par unless either stock finishes below trigger level, in which case 1% loss for each 1% decline of worse performing stock
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| Call: | At par if each stock closes at or above initial price on any quarterly observation date beginning Nov. 2, 2017
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| Initial levels: | $10.92 for Ford, $33.20 for GM
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| Trigger levels: | $6.55 for Ford, $19.92 for GM, 60% of initial levels
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| Pricing date: | May 2
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| Settlement date: | May 5
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| Agents: | RBC Capital Markets, LLC
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| Fees: | 2.75%
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| Cusip: | 78012KQ34
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