Published on 8/17/2017 in the Prospect News Structured Products Daily.
New Issue: RBC prices $190,000 contingent coupon barrier autocallables on Ford, General Motors
By Wendy Van Sickle
Columbus, Ohio, Aug. 17 – Royal Bank of Canada priced $190,000 million of autocallable contingent coupon barrier notes due Aug. 15, 2019 linked to the worse performing of 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 9.68% if each stock closes at or above its 65% coupon barrier on the observation date for that quarter.
The notes will be called at par if each stock closes above its initial level on any coupon payment date after six months.
The payout at maturity will be par unless either stock finishes below its 65% trigger level, in which case investors will receive a number shares of the worse performing stock equal to $1,000 divided by its initial share price.
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. and General Motors Corp.
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| Amount: | $190,000
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| Maturity: | Aug. 15, 2019
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| Coupon: | 9.68%, payable quarterly if each stock closes at or above 65% 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 65% trigger, in which case shares of the worse performing stock equal to $1,000 divided by initial level
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| Call: | At par if each stock closes above initial level on any coupon payment date after six months
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| Initial levels: | $10.77 for Ford, $34.93 for General Motors
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| Trigger levels: | $7.00 for Ford, $22.71 for General Motors; 65% of initial levels
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| Pricing date: | Aug. 11
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| Settlement date: | Aug. 16
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| Agents: | RBC Capital Markets, LLC
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| Fees: | 1.75%
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| Cusip: | 78012K3T2
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