Published on 11/13/2017 in the Prospect News Structured Products Daily.
New Issue: RBC sells $2.71 million contingent coupon barrier autocallables on Ford, General Motors
By Wendy Van Sickle
Columbus, Ohio, Nov. 13 – Royal Bank of Canada priced $2.71 million of autocallable contingent coupon barrier notes due Nov. 8, 2022 linked to the lesser performing of the common stocks of General Motors Corp. and Ford Motor Co., according to a 424B2 filing with the Securities and Exchange Commission.
If each stock closes at or above its 60% coupon barrier on a quarterly observation date, the notes will pay a contingent coupon for that quarter at an annual rate of 8.05%.
The notes will be called at par if each stock closes at or above its initial price on any quarterly observation date after six months.
The payout at maturity will be par unless either stock finishes below its 60% trigger price, 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., General Motors Corp.
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| Amount: | $2,705,000
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| Maturity: | Nov 8, 2022
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| Coupon: | 8.05%, payable each quarter that each stock closes at or above 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 price, in which case full exposure to losses of worse performing stock
|
| Call: | At par if each stock closes at or above initial price on any quarterly observation date beginning March 22, 2018
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| Initial price: | $12.36 for Ford, $42.34 for General Motors
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| Coupon barrier: | $7.42 for Ford, $25.40 for General Motors; 60% of initial prices
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| Trigger price: | $7.42 for Ford, $25.40 for General Motors; 60% of initial prices
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| Pricing date: | Nov. 3
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| Settlement date: | Nov. 8
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| Agent: | RBC Capital Markets, LLC
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| Fees: | 2.75%
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| Cusip: | 78013GLH6
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