By Susanna Moon
Chicago, July 1 – Royal Bank of Canada priced $1.39 million of airbag phoenix autocallable optimization securities due Dec. 30, 2016 linked to Monster Beverage Corp. shares, according to an FWP filing with the Securities and Exchange Commission.
The notes will pay a contingent monthly coupon at an annual rate of 7.8% if Monster shares close at or above the coupon barrier, 80% of the initial share price, on the observation date for that month.
The notes will be called at par if Monster shares close at or above the initial share price on any quarterly observation date.
If the notes are not called and the final price of Monster shares is greater than or equal to the conversion price, 90% of the initial share price, then the payout at maturity will be par.
Otherwise, investors will receive a number of Monster shares equal to $1,000 divided by the conversion price.
UBS Financial Services Inc. and RBC Capital Markets, LLC are the agents.
| Issuer: | Royal Bank of Canada
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| Issue: | Airbag phoenix autocallable optimization securities
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| Underlying stock: | Monster Beverage Corp. (Symbol: MNST)
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| Amount: | $805,000
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| Maturity: | Dec. 30, 2016
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| Coupon: | 7.8% annualized for each month that Monster shares close at or above coupon barrier on the observation date for that month
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| Price: | Par
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| Payout at maturity: | Par unless final share price is less than conversion price, in which case number of Monster shares equal to $1,000 divided by conversion price
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| Call: | At par if Monster shares close at or above initial share price on any quarterly observation date
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| Initial share price: | $139.41
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| Coupon barrier: | $111.53, 80% of initial level
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| Conversion price: | $125.47, 90% of initial share price
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| Pricing date: | June 26
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| Settlement date: | June 30
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| Underwriters: | UBS Financial Services Inc. and RBC Capital Markets, LLC
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| Fees: | 1.5%
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| Cusip: | 78013D359
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