By Susanna Moon
Chicago, May 12 – Royal Bank of Canada priced $2.64 million of trigger phoenix autocallable optimization securities due Nov. 15, 2016 linked to Fortinet, Inc. shares, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annual rate of 9.8% if the stock closes at or above its barrier level – 75% of the initial price – on the observation date for that quarter.
The notes will be called at par if the stock closes at or above its initial price on any quarterly observation date.
The payout at maturity will be par plus the contingent coupon unless the stock finishes below the 75% trigger level, in which case investors will receive the cash value of those shares.
UBS Financial Services Inc. and RBC Capital Markets, LLC are the agents.
| Issuer: | Royal Bank of Canada
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| Issue: | Trigger phoenix autocallable optimization securities
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| Underlying stock: | Fortinet, Inc. (Symbol: FTNT)
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| Amount: | $2,639,000
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| Maturity: | Nov. 15, 2016
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| Coupon: | 9.8%, payable quarterly if stock closes at or above barrier price on observation date for that quarter
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| Price: | Par of $10
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| Payout at maturity: | Par plus contingent coupon if Fortinet shares finish at or above trigger price; otherwise, cash value of Fortinet shares
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| Call: | At par plus contingent coupon if Fortinet shares close at or above initial price on a quarterly observation date
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| Initial share price: | $39.01
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| Barrier/trigger price: | $29.26, 75% of initial price
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| Pricing date: | May 8
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| Settlement date: | May 13
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| Agents: | UBS Financial Services Inc. and RBC Capital Markets, LLC
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| Fees: | 1.5%
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| Cusip: | 780082889
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