By Susanna Moon
Chicago, Jan. 26 – Royal Bank of Canada priced $2.1 million of contingent income autocallable securities due Jan. 28, 2016 linked to Valero Energy Corp. shares, 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% if Valero stock closes at or above the 75% barrier level on a determination date for that quarter.
The notes will be redeemed at par of $10 plus the contingent payment if the stock closes at or above the initial level on any of the first three quarterly determination dates.
If the notes are not called, the payout at maturity will be par plus the contingent payment unless the stock finishes below its 75% barrier level, in which case the payout will be a number of Valero shares equal to $10 divided by the initial share price or, at the issuer's option, the cash equivalent.
RBC Capital Markets, LLC is the agent. Morgan Stanley Wealth Management is the dealer.
| Issuer: | Royal Bank of Canada
|
| Issue: | Contingent income autocallable securities
|
| Underlying stock: | Valero Energy Corp. (Symbol: VLO)
|
| Amount: | $2,098,600
|
| Maturity: | Jan. 28, 2016
|
| Coupon: | 13% per year, payable quarterly if Valero shares close at or barrier level on determination date for that quarter
|
| Price: | Par of $10.00
|
| Payout at maturity: | If stock finishes at or above barrier level, par plus final contingent coupon; otherwise, 0.1994 Valero shares
|
| Call: | At par plus contingent coupon if Valero shares close at or above initial share price on any of the first three determination dates
|
| Initial share price: | $50.16
|
| Barrier level: | $37.62, 75% of initial share price
|
| Pricing date: | Jan. 23
|
| Settlement date: | Jan. 28
|
| Agent: | RBC Capital Markets, LLC
|
| Distribution: | Morgan Stanley Wealth Management
|
| Fees: | 1.25%
|
| Cusip: | 780082277
|
|
|
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
