By Wendy Van Sickle
Columbus, Ohio, Jan. 5 – Royal Bank of Canada priced $10.43 million of buffered contingent income autocallable securities with memory feature due Jan. 4, 2027 linked to the United Airlines Holdings, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annual rate of 11.05% if the stock closes at or above its 50% coupon barrier on the corresponding observation date. Previously unpaid coupons, if any, will be automatically included whenever a coupon is paid.
The notes will be called at par plus the contingent coupon if the shares close at or above the initial share price on any quarterly determination date.
If the final share price is greater than or equal to the downside threshold level, 50% of initial level, the payout at maturity will be par plus all unpaid coupons.
Otherwise, investors will have full exposure to the stock’s decline.
RBC Capital Markets, LLC is the agent and Morgan Stanley Wealth Management is the dealer.
Issuer: | Royal Bank of Canada
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Issue: | Buffered contingent income autocallable securities with memory feature
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Underlying stock: | United Airlines Holdings, Inc.
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Amount: | $10,427,000
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Maturity: | Jan. 4, 2027
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Coupon: | 11.05% per year, payable quarterly if shares close at or above coupon barrier level on the relevant observation date; coupon payment events will automatically include any previously unpaid coupons
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Price: | Par
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Payout at maturity: | Par plus the final coupon unless stock finishes below downside threshold level, in which case full exposure to decline
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Call: | At par plus contingent coupon if shares close at or above initial share price on any quarterly determination date
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Initial share price: | $41.97
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Downside threshold: | $20.99; 50% of initial share price
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Pricing date: | Dec. 28
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Settlement date: | Jan. 3
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Agent: | RBC Capital Markets, LLC
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Dealer: | Morgan Stanley Wealth Management
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Fees: | 2.25%
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Cusip: | 78017F7H0
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