Published on 10/11/2017 in the Prospect News Structured Products Daily.
New Issue: RBC sells $425,000 8.75% contingent barrier autocallables tied to Ford, GM
By Susanna Moon
Chicago, Oct. 11 – Royal Bank of Canada priced $425,000 of autocallable contingent coupon barrier notes due Oct. 1, 2020 linked to the lesser 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 8.75% if each stock closes at or above its 60% 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 quarterly observation date after six months.
The payout at maturity will be par unless either stock finishes below its 60% 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) and General Motors Corp. (Symbol: GM)
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| Amount: | $425,000
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| Maturity: | Oct. 1, 2020
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| Coupon: | 8.75%, 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 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 quarterly observation date beginning March 28, 2018
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| Initial levels: | $11.96 for Ford, $40.58 for GM
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| Trigger levels: | $7.18 for Ford, $24.35 for GM, 60% of initial levels
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| Pricing date: | Sept. 28
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| Settlement date: | Oct. 3
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| Agent: | RBC Capital Markets, LLC
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| Fees: | 2%
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| Cusip: | 78013GJL0
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