New Issue: RBC sells $2.35 million contingent memory coupon barrier autocalls on stocks

By Sarah Lizee

Olympia, Wash., April 1 – Royal Bank of Canada priced $2.35 million of autocallable contingent coupon barrier notes with memory coupon due April 1, 2020 linked to the common stock of Applied Materials, Inc. and Cisco Systems, Inc., according to a 424B2 filing with the Securities and Exchange Commission.

The notes pay a contingent quarterly coupon at an annual rate of 11.35% if each stock closes at or above its 70% coupon barrier on the observation date for that quarter, plus any previously unpaid contingent interest payments.

The notes will be automatically called at par plus the contingent coupon and any unpaid coupon if both stocks close above their initial levels on any quarterly observation date.

The payout at maturity will be par unless any stock finishes below its 70% trigger level, in which case investors will receive a number of shares of the lesser performing stock equal to $1,000 divided by the initial share price or, at the issuer’s option, the cash equivalent.

RBC Capital Markets, LLC is the underwriter.

Issuer:	Royal Bank of Canada
Issue:	Autocallable contingent coupon barrier notes with memory coupon
Underlying stocks:	Applied Materials, Inc. and Cisco Systems, Inc.
Amount:	$2,354,000
Maturity:	April 1, 2020
Coupon:	11.35%, payable quarterly if each stock closes at or above coupon barrier on observation date for that quarter, plus any previously unpaid contingent interest payments
Price:	Par
Payout at maturity:	Par unless any stock finishes below trigger level, in which case investors will receive a number of shares of the lesser performing stock equal to $1,000 divided by the initial share price or, at the issuer’s option, the cash equivalent
Call:	Automatically at par plus the contingent coupon and any unpaid coupon if both stocks close above their initial levels on any quarterly observation date
Initial levels:	$38.93 for Applied, $53.14 for Cisco
Trigger/coupon barriers:	$27.25 for Applied, $37.20 for Cisco, 70% of initial levels
Pricing date:	March 27
Settlement date:	April 1
Agent:	RBC Capital Markets, LLC
Fees:	2%
Cusip:	78013GGG4

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