By Angela McDaniels
Tacoma, Wash., June 3 - Royal Bank of Canada priced $577,000 of 0% phoenix autocallable notes due June 17, 2015 linked to the common stock of Amazon.com, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes will pay a contingent coupon at the rate of 12.3% per year if Amazon shares close at or above the trigger price, 80% of the initial share price, on the observation date for that quarter. Otherwise, no coupon will be paid for that quarter.
The notes will be called at par plus the contingent coupon if the stock closes at or above the initial price on any quarterly observation date other than the final observation date.
If the notes are not called and the shares finish at or above the trigger price, the payout at maturity will be par plus the contingent coupon. Otherwise, investors will lose 1% for every 1% that the final share price is less than the initial share price.
RBC Capital Markets LLC is the underwriter with J.P. Morgan Securities LLC as agent.
| Issuer: | Royal Bank of Canada
|
| Issue: | Phoenix autocallable notes
|
| Underlying stock: | Amazon.com, Inc. (Symbol: AMZN)
|
| Amount: | $577,000
|
| Maturity: | June 17, 2015
|
| Coupon: | 12.3%, payable quarterly if stock closes at or above trigger price on observation date for that quarter
|
| Price: | Par
|
| Payout at maturity: | Par plus contingent coupon if Amazon shares finish at or above trigger price; otherwise, par plus stock return
|
| Call: | Automatically at par plus contingent coupon if Amazon shares close at or above initial price on any quarterly observation date other than final one
|
| Initial share price: | $312.55
|
| Final share price: | Average of stock's closing share prices on the five trading days ending June 12, 2015
|
| Trigger price: | $250.04, 80% of initial price
|
| Pricing date: | May 30
|
| Settlement date: | June 4
|
| Underwriter: | RBC Capital Markets LLC
|
| Agent: | J.P. Morgan Securities LLC
|
| Fees: | 1%
|
| Cusip: | 78010UZU4
|
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