By Susanna Moon
Chicago, Dec. 11 – Royal Bank of Canada priced $2.5 million of contingent income autocallable securities due Nov. 21, 2019 linked to Palo Alto Networks, Inc. stock, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annual rate of 13.5% if the stock closes at or above the 70% downside threshold on the determination date for that quarter.
The notes will be called at par plus the contingent coupon if the stock closes at or above its initial level on any of the first three determination dates.
The payout at maturity will be par unless the stock finishes below its 70% downside threshold, in which case investors will lose 1% for each 1% decline.
RBC Capital Markets, LLC is the agent with Morgan Stanley Wealth Management as dealer.
| Issuer: | Royal Bank of Canada
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| Issue: | Contingent income autocallable securities
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| Underlying stock: | Palo Alto Networks, Inc. (Symbol: PANW)
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| Amount: | $2.5 million
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| Maturity: | Nov. 21, 2019
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| Coupon: | 13.5% annualized, payable each quarter if stock closes at or above downside threshold level on determination date for that quarter
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| Price: | Par
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| Payout at maturity: | If stock finishes above downside threshold, par; otherwise, full exposure to decline
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| Call: | At par plus contingent coupon if stock closes at or above initial level on any of the first three determination dates
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| Initial share price: | $169.61
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| Downside threshold: | $118.73, 70% of initial level
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| Pricing date: | Nov. 16
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| Settlement date: | Nov. 21
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| Agent: | RBC Capital Markets, LLC with Morgan Stanley Wealth Management as dealer
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| Fees: | 1.25%
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| Cusip: | 78014G815
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