Published on 7/18/2017 in the Prospect News Structured Products Daily.
New Issue: RBC prices $1 million contingent coupon barrier autocalls on GE, Gap
New York, July 18 – Royal Bank of Canada priced $1 million of 10.25% autocallable contingent coupon barrier notes due July 17, 2020 linked to the lesser performing of the common stocks of General Electric Co. and Gap, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a quarterly coupon at an annual rate of 10.25% if each stock closes above its coupon barrier level, 50% of its initial price, on the observation date for that quarter.
The notes will be called at par the coupon if each stock closes above its initial price on any quarterly observation date, starting Jan. 22, 2018.
The payout at maturity will be par plus the final coupon unless either stock finishes below the 50% trigger price, in which case investors will lose 1% for each 1% that the lesser-performing stock’s final level is less than its initial level.
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 stocks: | General Electric Co. (Symbol: GE), Gap, Inc. (Symbol: GPS)
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| Amount: | $1 million
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| Maturity: | July 17, 2020
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| Coupon: | 10.25%, payable quarterly if each stock closes at or above coupon barrier level on observation date for that quarter
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| Price: | Par
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| Payout at maturity: | Par unless either stock finishes below trigger price, in which case investors will lose 1% for each 1% that the lesser-performing stock’s final level is less than its initial level
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| Call: | Beginning Jan. 22, 2018, at par if each stock closes at or above initial share price on any quarterly observation date
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| Initial stock prices: | $26.78 for GE, $23.28 for Gap
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| Coupon barrier/trigger prices: | $13.39 for GE, $11.64 for Gap; 50% of initial stock prices
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| Pricing date: | July 14
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| Settlement date: | July 19
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| Underwriter: | RBC Capital Markets, LLC
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| Fees: | 1.75%
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| Cusip: | 78012K3E5
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