By Toni Weeks
San Luis Obispo, Calif., April 16 - Royal Bank of Canada priced $23.43 million of contingent income autocallable securities due April 16, 2015 linked to the common stock of Facebook, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
If Facebook shares close at or above the downside threshold level - 75% of the initial share price - on a quarterly determination date, investors will receive a contingent payment of $0.5375 for each $10.00 note. Otherwise, no contingent payment will be made for that period. The contingent payment is equivalent to 21.5% per year.
If the closing share price is greater than or equal to the initial share price on any of the first three 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 price is less than the downside threshold level, the payout will be a number of Facebook shares equal to $10.00 divided by the initial share price or, at the issuer's option, an equivalent cash amount.
RBC Capital Markets, LLC is the agent. Morgan Stanley Wealth Management will handle distribution.
| Issuer: | Royal Bank of Canada
|
| Issue: | Contingent income autocallable securities
|
| Underlying stock: | Facebook, Inc. (Symbol: FB)
|
| Amount: | $23,427,950
|
| Maturity: | April 16, 2015
|
| Contingent payment: | If Facebook shares close at or above downside threshold on quarterly determination date, $0.5375 per note; otherwise, no contingent payment for that period
|
| Price: | Par of $10.00
|
| Payout at maturity: | If final share price is greater than or equal to downside threshold, par plus $0.5375; if final share price is less than downside threshold, 0.1709 Facebook shares or, at issuer's option, cash amount equal to value of those shares
|
| Call: | Automatically at par plus $0.5375 if closing share price is greater than or equal to initial level on any of first three quarterly determination dates
|
| Initial share price: | $58.51
|
| Downside threshold: | $43.88, 75% of initial share price
|
| Pricing date: | April 11
|
| Settlement date: | April 16
|
| Agent: | RBC Capital Markets, LLC
|
| Distribution: | Morgan Stanley Wealth Management
|
| Fees: | 1.5%
|
| Cusip: | 78011Q170
|
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