Published on 10/5/2015 in the Prospect News Structured Products Daily.
New Issue: RBC prices $800,000 trigger phoenix autocallables linked to Amazon, Facebook
By Angela McDaniels
Tacoma, Wash., Oct. 5 – Royal Bank of Canada priced $800,000 of trigger phoenix autocallable notes due March 31, 2016 linked to the lesser performing of the common stocks of Amazon.com, Inc. and Facebook, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes will pay a contingent quarterly coupon at the rate of 10.32% per year if each stock closes at or above its trigger level, 70% of its initial price, on the observation date for that quarter.
The notes will be called at par if each stock closes at or above its initial price on either quarterly observation date.
If the notes are not called and each stock finishes at or above its trigger level, the payout at maturity will be par plus the final contingent coupon. Otherwise, investors will receive a number of shares of the worst-performing stock equal to $1,000 divided by its initial price or, at the issuer’s option, the cash value of those shares.
RBC Capital Markets, LLC is the agent.
| Issuer: | Royal Bank of Canada
|
| Issue: | Trigger phoenix autocallable notes
|
| Underlying stocks: | Amazon.com, Inc. (Symbol: AMZN) and Facebook, Inc. (Symbol: FB)
|
| Amount: | $800,000
|
| Maturity: | March 31, 2016
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| Coupon: | 10.32% per year, payable quarterly if each stock closes at or above trigger level on observation date for that quarter
|
| Price: | Par
|
| Payout at maturity: | If each stock finishes at or above trigger level, par plus coupon; otherwise, number of shares of worst-performing stock equal to $1,000 divided by initial price or, at issuer’s option, cash value of those shares
|
| Call: | At par plus contingent coupon if each stock closes at or above initial level on any quarterly observation date
|
| Initial share prices: | $524.25 for Amazon and $92.77 for Facebook
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| Trigger price: | $366.98 for Amazon and $64.94 for Facebook; 70% of initial share price
|
| Pricing date: | Sept. 25
|
| Settlement date: | Sept. 30
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| Agent: | RBC Capital Markets, LLC
|
| Fees: | 1.75%
|
| Cusip: | 78012KGQ4
|
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