By Wendy Van Sickle
Columbus, Ohio, April 12 – Royal Bank of Canada priced $5 million of trigger phoenix autocallable notes due July 13, 2017 linked to the worse performing of the S&P 500 index and the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes will pay a contingent coupon of 8.6% per year if each index closes at or above its coupon barrier level, 70% of its initial level, on the observation date for that quarter.
The notes will be called at par if each index closes at or above its initial level on any quarterly observation date.
If the notes are not called and each index finishes at or above its trigger level, 70% of its initial level, the payout at maturity will be par plus the final contingent coupon, if any. Otherwise, investors will be exposed to the decline of the lesser-performing index.
UBS Financial Services Inc. and RBC Capital Markets, LLC are the agents.
| Issuer: | Royal Bank of Canada
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| Issue: | Trigger phoenix autocallable notes
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| Underlying indexes: | S&P 500 and Russell 2000
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| Amount: | $5 million
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| Maturity: | July 13, 2017
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| Coupon: | 8.6% per year, payable quarterly if each index closes at or above coupon barrier on observation date for that quarter
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| Price: | Par
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| Payout at maturity: | Par plus contingent coupon if each index finishes at or above trigger level; otherwise, full exposure to decline of lesser-performing index
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| Call: | Automatically at par if each index closes at or above initial level on any quarterly observation date
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| Initial index levels: | 1,097.314 for Russell and 2,047.60 for S&P 500
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| Trigger/coupon barrier: | 768.120 for Russell and 1,433.32 for S&P 500; 70% of initial levels
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| Pricing date: | April 8
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| Settlement date: | April 13
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| Agents: | RBC Capital Markets LLC and UBS Financial Services Inc.
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| Fees: | None
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| Cusip: | 78012KNJ2
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