By Angela McDaniels
Tacoma, Wash., Sept. 12 – Royal Bank of Canada priced $2.84 million of autocallable contingent coupon barrier notes due March 13, 2017 linked to the lesser performing of the common stocks of Eli Lilly & Co. and Southwest Airlines Co., according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes pay a contingent coupon at an annual rate of 15.11% if each stock closes at or above its trigger price, 80% of its initial price, on the observation date for that quarter.
The notes will be called at par if each stock closes at or above its initial share price on any quarterly observation date.
The payout at maturity will be par unless either stock finishes below its trigger price, in which case investors will receive a number of shares of the lesser-performing stock equal to $1,000 divided by its initial share price or, at the issuer’s option, an amount in cash equal to the value of those shares.
RBC Capital Markets, LLC is the underwriter.
| Issuer: | Royal Bank of Canada
|
| Issue: | Autocallable contingent coupon barrier notes
|
| Underlying stocks: | Eli Lilly & Co. (NYSE: LLY) and Southwest Airlines Co. (NYSE: LUV)
|
| Amount: | $2,835,000
|
| Maturity: | March 13, 2017
|
| Coupon: | 15.11%, payable quarterly if each stock closes above trigger price on observation date for that quarter
|
| Price: | Par
|
| Payout at maturity: | Par unless either stock finishes below trigger price, in which case number of shares of lesser-performing stock equal to $1,000 divided by its initial share price or, at issuer’s option, amount in cash equal to value of those shares
|
| Call: | At par if each stock closes at or above initial share price on any quarterly observation date
|
| Initial share prices: | $79.89 for Eli Lilly and $38.76 for Southwest
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| Trigger prices: | $63.91 for Eli Lilly and $31.01 for Southwest; 80% of initial prices
|
| Pricing date: | Sept. 8
|
| Settlement date: | Sept. 13
|
| Underwriter: | RBC Capital Markets, LLC
|
| Fees: | 1.75%
|
| Cusip: | 78013GBJ3
|
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