Published on 8/30/2017 in the Prospect News Structured Products Daily.
New Issue: RBC prices $1.5 million contingent coupon barrier autocallables tied to two stocks
By Susanna Moon
Chicago, Aug. 30 – Royal Bank of Canada priced $1.5 million of autocallable contingent coupon barrier notes due Aug. 29, 2019 linked to the lesser performing of the common stocks of Ford Motor Co. and Tesla Inc., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annual rate of 11.5% if each stock closes at or above its 55% coupon barrier on the observation date for that quarter.
The notes will be called at par if each stock closes its initial level on any coupon payment date after six months.
The payout at maturity will be par unless either stock finishes below its 55% trigger level, in which case investors will be fully exposed to any losses 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), Tesla Inc. (Symbol: TSLA)
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| Amount: | $1.5 million
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| Maturity: | Aug. 29, 2019
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| Coupon: | 11.5%, payable quarterly if each stock closes at or above 55% 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 55% trigger level, in which case shares of the worse performing stock equal to $1,000 divided by the initial share price
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| Call: | At par if each stock closes above initial level on any coupon payment date beginning Feb. 26, 2018
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| Initial level: | $10.83 for Ford, $347.99 for Tesla
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| Trigger level: | $5.96 for Ford, $191.40 for Tesla, 55% of initial levels
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| Pricing date: | Aug. 25
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| Settlement date: | Aug. 30
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| Agents: | RBC Capital Markets, LLC
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| Fees: | 1.75%
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| Cusip: | 78012K4P9
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