By Toni Weeks
San Luis Obispo, Calif., July 2 - Royal Bank of Canada priced $765,000 of phoenix autocallable notes due July 16, 2014 linked to Schlumberger Ltd. shares, according to a 424B2 filing with the Securities and Exchange Commission.
If Schlumberger stock closes at or above the 80% barrier level on a quarterly observation date, the notes will pay a contingent coupon at an annualized rate of 12.85% for that quarter.
If the shares close at or above the initial price on any quarterly observation date, the notes will be called at par plus the contingent coupon.
If the notes are not called and Schlumberger shares finish at or above the 80% trigger price, the payout at maturity will be par plus the contingent coupon.
Otherwise, investors will be fully exposed to any losses.
RBC Capital Markets LLC is the underwriter with J.P. Morgan Securities LLC as placement agent.
| Issuer: | Royal Bank of Canada
|
| Issue: | Phoenix autocallable notes
|
| Underlying stock: | Schlumberger N.V. (Symbol: SLB)
|
| Amount: | $765,000
|
| Maturity: | July 16, 2014
|
| Coupon: | 12.85% per year, payable quarterly if stock closes at or above barrier level on observation date for that quarter
|
| Price: | Par
|
| Payout at maturity: | Par plus contingent coupon if Schlumberger shares finish at or above trigger price; otherwise, par plus stock return
|
| Call: | At par plus contingent coupon if Schlumberger shares close at or above initial price on any quarterly observation date
|
| Initial share price: | $71.66
|
| Barrier/trigger price: | $57.33, 80% of initial share price
|
| Pricing date: | June 28
|
| Settlement date: | July 3
|
| Underwriter: | RBC Capital Markets LLC with J.P. Morgan Securities LLC as placement agent
|
| Fees: | 1%
|
| Cusip: | 78008S4K9
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