Published on 9/22/2016 in the Prospect News Structured Products Daily.
New Issue: RBC prices $4.03 million of contingent coupon barrier autocallables on BofA stock
By Devika Patel
Knoxville, Tenn., Sept. 22 – Royal Bank of Canada priced $4.03 million of autocallable contingent coupon barrier notes due Sept. 22, 2017 linked to the common stock of Bank of America Corp., according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes will pay a contingent coupon at an annual rate of 9.25% if the stock closes at or above the 75% barrier price on the observation date for that quarter.
The notes will be called at par if the stock closes at or above its initial price on any quarterly observation date.
The payout at maturity will be par unless the stock finishes below the 75% trigger price, in which case investors will receive a number of BofA shares equal to the principal divided by the initial share price, or, at the issuer’s option, the cash equivalent.
RBC Capital Markets, LLC is the underwriter.
| Issuer: | Royal Bank of Canada
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| Issue: | Autocallable contingent coupon barrier notes
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| Underlying stock: | Bank of America Corp. (NYSE: BAC)
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| Amount: | $4,025,000
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| Maturity: | Sept. 22, 2017
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| Coupon: | 9.25%, payable quarterly if stock closes at or above barrier price on observation date for that quarter
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| Price: | Par of $1,000
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| Payout at maturity: | Par unless stock finishes below trigger price, in which case a number of BofA shares equal to the principal divided by the initial share price, or, at issuer’s option, cash equivalent
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| Call: | At par if stock closes at or above initial price on any quarterly observation date
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| Initial price: | $15.59
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| Barrier/trigger price: | $11.69, 75% of initial price
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| Pricing date: | Sept. 19
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| Settlement date: | Sept. 22
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| Agents: | RBC Capital Markets, LLC
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| Fees: | 1.25%
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| Cusip: | 78013GBM6
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