By Toni Weeks
San Luis Obispo, Calif., Sept. 16 - Royal Bank of Canada priced $2 million of 8.8% airbag autocallable yield optimization notes due Sept. 18, 2014 linked to ANN Inc. shares, according to a 424B2 filing with the Securities and Exchange Commission.
Interest will be payable monthly.
The notes will be called at par plus the coupon if the stock closes at or above the initial share price on any quarterly observation date.
If the notes are not called, the payout at maturity will be par unless the final share price is less than the conversion price, in which case the payout will be a number of ANN shares equal to $1,000 divided by the conversion price. The conversion price is 85% of the initial share price.
UBS Financial Services Inc. and RBC Capital Markets, LLC are the agents.
Issuer: | Royal Bank of Canada
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Issue: | Airbag autocallable yield optimization notes
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Underlying stock: | ANN Inc. (Symbol: ANN)
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Amount: | $2 million
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Maturity: | Sept. 18, 2014
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Coupon: | 8.8%, payable monthly
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Price: | Par
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Payout at maturity: | Par unless final share price is less than conversion price, in which case 33.2557 ANN shares
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Call: | At par plus accrued interest if ANN stock closes at or above initial share price on quarterly call date
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Initial share price: | $35.38
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Conversion price: | $30.07, 85% of initial share price
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Pricing date: | Sept. 12
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Settlement date: | Sept. 17
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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: | 78009Q406
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