By Toni Weeks
San Luis Obispo, Calif., March 19 - Royal Bank of Canada priced $20 million of contingent income autocallable securities due March 18, 2016 linked to the common stock of General Motors Co., according to a 424B2 filing with the Securities and Exchange Commission.
If General Motors stock closes at or above the downside threshold level - 75% of the initial share price - on any quarterly determination date, investors will receive a contingent payment of $0.2625 for each $10.00 note. Otherwise, no contingent payment will be made for that period.
If the closing share price is greater than or equal to the initial share price on any of the first 11 quarterly determination dates, the notes will be automatically redeemed at par plus the contingent payment.
If the notes are not called and the final share price is greater than or equal to the downside threshold level, the payout at maturity will be par plus the contingent payment. If the final share price is less than the downside threshold level, the payout will be a number of General Motors shares equal to the principal amount of notes divided by the initial share price or, at the issuer's option, the cash value of those shares.
RBC Capital Markets, LLC is the agent with Morgan Stanley Smith Barney LLC as dealer.
| Issuer: | Royal Bank of Canada
|
| Issue: | Contingent income autocallable securities
|
| Underlying stock: | General Motors Co. (Symbol: GM)
|
| Amount: | $19,998,250
|
| Maturity: | March 18, 2016
|
| Coupon: | 2.625% if closing price is at least 75% of initial price on quarterly determination date; otherwise, none
|
| Price: | Par
|
| Payout at maturity: | If final share price is at least 75% of initial price, par plus contingent quarterly payment; otherwise, 0.35448 General Motors shares per $10.00 principal amount, or, at RBC's option, equivalent cash amount of those shares
|
| Initial price: | $28.21
|
| Downside threshold level: | $21.16, 75% of initial share price
|
| Call: | Par plus contingent payment if closing share price greater than or equal to initial share price on first 11 quarterly determination dates
|
| Pricing date: | March 15
|
| Settlement date: | March 20
|
| Agent: | RBC Capital Markets, LLC with Morgan Stanley Smith Barney LLC as dealer
|
| Fees: | 2.25%, used for selling concessions
|
| Cusip: | 78008D265
|
© 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.
