New Issue: RBC prices $2.52 million trigger phoenix notes with memory coupon linked to Goldman, JPMorgan

By Angela McDaniels

Tacoma, Wash., Aug. 26 – Royal Bank of Canada priced $2.52 million of trigger phoenix autocallable notes with memory coupon due Aug. 25, 2017 linked to the worst performing of the common stocks of Goldman Sachs Group, Inc. and JPMorgan Chase & Co., according to a 424B2 filing with the Securities and Exchange Commission.

If each stock closes at or above its barrier price, 75% of the initial share price, on a quarterly observation date, the issuer will pay a contingent coupon for that quarter at the annual rate of 8.1% plus the memory coupon, which is the product of (a) the contingent coupon and (b) the number of contingent coupon payments, if any, that were not previously paid on their coupon payment dates because one or both of the stock prices was less than its barrier price on the corresponding observation date.

If each stock closes at or above its initial price on any quarterly observation date, the notes will be called at par plus the contingent coupon.

If the notes are not called, the payout at maturity will be par plus the contingent coupon unless the final share price of the worst-performing stock is less than its barrier price, in which case investors will receive a number of shares of the worst-performing stock equal to $1,000 divided by that stock’s initial share price or, at the issuer's option, an amount in cash equal to the value of those shares.

RBC Capital Markets, LLC is the underwriter.

Issuer:	Royal Bank of Canada
Issue:	Trigger phoenix autocallable notes with memory coupon
Underlying stocks:	Goldman Sachs Group, Inc. (Symbol: GS) and JPMorgan Chase & Co. (Symbol: JPM)
Amount:	$2,517,000
Maturity:	Aug. 25, 2017
Coupon:	If each stock closes at or above barrier price on quarterly observation date, contingent coupon will be paid for that quarter at annual rate of 8.1% plus memory coupon
Memory coupon:	Product of (a) contingent coupon and (b) number of contingent coupon payments, if any, not previously paid because stock price was less than coupon barrier on corresponding observation date
Price:	Par
Payout at maturity:	If each stock finishes at or above barrier price, par plus contingent coupon; otherwise, number of shares of worst-performing stock equal to $1,000 divided by initial share price or, at issuer's option, amount in cash equal to value of those shares
Call:	Automatically at par plus contingent coupon if each stock closes at or above initial price on any quarterly observation date
Initial share prices:	$175.47 for Goldman Sachs and $58.49 for JPMorgan
Barrier prices:	$131.60 for Goldman Sachs and $43.87 for JPMorgan; 75% of initial share prices
Pricing date:	Aug. 22
Settlement date:	Aug. 27
Underwriter:	RBC Capital Markets, LLC
Fees:	2%
Cusip:	78010US81

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