By Toni Weeks
San Luis Obispo, Calif., Jan. 30 – Royal Bank of Canada priced $6.16 million of trigger phoenix autocallable notes due Jan. 31, 2018 linked to the shares of Market Vectors Gold Miners exchange-traded fund, according to a 424B2 filing with the Securities and Exchange Commission.
If Market Vectors Gold Miners stock closes at or above the trigger price – 55% of the initial share price – on a quarterly observation date, the issuer will pay a contingent coupon for that quarter at the rate of 7.1%. Otherwise, no coupon will be paid that quarter.
If the shares close at or above the initial price on a quarterly observation date, the notes will be called at par plus the contingent coupon.
If the notes are not called and Market Vectors Gold Miners shares finish at or above the trigger price, the payout at maturity will be par plus the contingent coupon. Otherwise, investors will be exposed to the share price decline from the initial price.
RBC Capital Markets, LLC is the agent.
| Issuer: | Royal Bank of Canada
|
| Issue: | Trigger phoenix autocallable notes
|
| Underlying stock: | Market Vectors Gold Miners ETF
|
| Amount: | $6,157,000
|
| Maturity: | Jan. 31, 2018
|
| Coupon: | 7.1%, 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 Market Vectors Gold Miners shares finish at or above trigger price; otherwise, par plus stock return
|
| Call: | Automatically at par plus contingent coupon if Market Vectors Gold Miners shares close at or above initial price on a quarterly observation date
|
| Initial share price: | $21.97
|
| Trigger price: | $12.08, 55% of initial price
|
| Pricing date: | Jan. 28
|
| Settlement date: | Jan. 30
|
| Agent: | RBC Capital Markets, LLC
|
| Fees: | 2.25%
|
| Cusip: | 78012KAT4
|
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