By Susanna Moon
Chicago, April 9 - Royal Bank of Canada priced $4.96 million of trigger phoenix autocallable optimization securities due Oct. 10, 2014 linked to Morgan Stanley shares, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a quarterly contingent coupon at an annualized rate of 13.2% if Morgan Stanley shares close at or above the trigger price - 75% of the initial share price - on a quarterly observation date.
The notes will be called at par of $10 plus the contingent coupon if the shares close at or above the initial price on any monthly observation date after one year.
If the notes are not called and Morgan Stanley shares finish at or above the trigger price, the payout at maturity will be par plus the contingent coupon.
Otherwise, investors will be fully exposed to losses.
UBS Financial Services Inc. and RBC Capital Markets, LLC are the underwriters.
| Issuer: | Royal Bank of Canada
|
| Issue: | Trigger phoenix autocallable optimization securities
|
| Underlying stock: | Morgan Stanley (Symbol: MS)
|
| Amount: | $4,960,450
|
| Maturity: | Oct. 10, 2014
|
| Coupon: | 13.2% annualized if shares close at or above trigger price on observation date for that quarter
|
| Price: | Par of $10
|
| Payout at maturity: | Par plus contingent coupon if Morgan Stanley shares finish at or above trigger price; otherwise, par plus stock return
|
| Call: | At par plus contingent coupon if Morgan Stanley shares close at or above initial price on any monthly observation date after one year
|
| Initial share price: | $21.56
|
| Trigger price: | $16.17, % of initial share price
|
| Pricing date: | April 5
|
| Settlement date: | April 10
|
| Underwriters: | UBS Financial Services Inc. and RBC Capital Markets, LLC
|
| Fees: | 1.5%
|
| Cusip: | 78008D380
|
© 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.
