By William Gullotti
Buffalo, N.Y., July 21 – Royal Bank of Canada priced $1.28 million of phoenix autocallable notes with memory coupon due July 10, 2025 linked to Microsoft Corp. shares, according to a 424B2 filing with the Securities and Exchange Commission.
If the stock closes at or above the barrier level, 80% of the initial level, on a quarterly observation date, the notes will pay a contingent coupon for that quarter at an annualized rate of 9%, plus any previously unpaid contingent interest payments.
The notes will be called at par plus coupon if the shares close at or above the initial share price on any observation date other than the final date.
The payout at maturity will be par plus the final coupon unless the stock finishes below the 80% trigger price, in which case investors will be exposed to the decline of the stock.
RBC Capital Markets, LLC is the agent. JPMorgan Chase Bank, NA and J.P. Morgan Securities LLC are acting as placement agents.
| Issuer: | Royal Bank of Canada
|
| Issue: | Phoenix autocallable notes with memory coupon
|
| Underlying stock: | Microsoft Corp.
|
| Amount: | $1,276,000
|
| Maturity: | July 10, 2025
|
| Coupon: | 9% annualized, paid quarterly, plus any previously unpaid coupons if stock closes at or above barrier level on quarterly observation date
|
| Price: | Par
|
| Payout at maturity: | Par plus final coupon if stock finishes at or above trigger price; otherwise, lose 1% for every 1% of stock decline from initial price
|
| Call: | At par plus coupon if stock closes at or above initial level on a quarterly observation date
|
| Initial price: | $337.22
|
| Barrier/trigger price: | $269.78; 80% of initial price
|
| Pricing date: | July 7
|
| Settlement date: | July 12
|
| Agent: | RBC Capital Markets, LLC,
|
| Placement agents: | JPMorgan Chase Bank, NA and J.P. Morgan Securities LLC
|
| Fees: | 1.5%
|
| Cusip: | 78016NMQ7
|
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
