By Marisa Wong
Morgantown, W.Va., Nov. 10 – Royal Bank of Canada priced $5.31 million of contingent income autocallable securities due May 5, 2016 linked to the common stock of Freeport-McMoRan, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
If Freeport-McMoRan shares close at or above the downside threshold level, 60% of the initial share price, on a monthly determination date, the notes will pay a contingent payment that quarter at an annualized rate of 19.6%.
The notes will be called at par of $10 plus the contingent coupon if Freeport-McMoRan shares close at or above 95% of the initial share price on any of the first five determination dates.
If the final share price is greater than or equal to the downside threshold level, the payout at maturity will be par plus the final 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 agent with Morgan Stanley Smith Barney LLC handling distribution.
| Issuer: | Royal Bank of Canada
|
| Issue: | Contingent income autocallable securities
|
| Underlying stock: | Freeport-McMoRan Inc.
|
| Amount: | $5,307,600
|
| Maturity: | May 5, 2016
|
| Coupon: | 19.6% per year, payable monthly if shares close at or above downside threshold level on determination date for that month
|
| Price: | Par of $10
|
| Payout at maturity: | Par plus contingent coupon if shares finish at or above downside threshold level; otherwise, 1% loss for every 1% that final share price is less than the initial price
|
| Call: | At par plus contingent payment if shares close at or above 95% of initial price on any of first five determination dates
|
| Initial price: | $11.77
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| Downside threshold: | $7.06, 60% of initial price
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| Pricing date: | Oct. 30
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| Settlement date: | Nov. 4
|
| Agent: | RBC Capital Markets, LLC
|
| Distribution: | Morgan Stanley Wealth Management
|
| Fees: | 1.25%
|
| Cusip: | 78013C120
|
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