By Toni Weeks
San Luis Obispo, Calif., March 24 – Royal Bank of Canada priced $8.93 million of contingent income autocallable securities due March 24, 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 11.5% if Valero Energy shares close at or above the barrier level, 75% of the initial share price, on a determination date for that quarter.
The notes will be called at par of $10 plus the contingent coupon if Valero Energy shares close at or above the initial share price on any of the first three determination dates.
If the stock finishes at or above the barrier level, the payout at maturity will be par plus the contingent coupon.
Otherwise, investors will receive a number of Valero Energy 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 with Morgan Stanley Wealth Management handling distribution.
| Issuer: | Royal Bank of Canada
|
| Issue: | Contingent income autocallable securities
|
| Underlying index: | Valero Energy Corp.
|
| Amount: | $8,930,600
|
| Maturity: | March 24, 2016
|
| Contingent payment: | 11.5% per year if Valero Energy stock closes at or above barrier level on determination date for that quarter
|
| Price: | Par of $10
|
| Payout at maturity: | Par plus contingent coupon if Valero Energy stock finishes at or above barrier level; otherwise 0.1625 Valero Energy shares per $10 principal amount or, at issuer’s option, cash equivalent
|
| Call: | At par plus contingent payment if Valero Energy stock closes at or above initial share price on any of first three determination dates
|
| Initial share price: | $61.55
|
| Barrier level: | $46.16, 75% of initial price
|
| Pricing date: | March 20
|
| Settlement date: | March 25
|
| Agent: | RBC Capital Markets, LLC with Morgan Stanley Wealth Management as dealer
|
| Fees: | 1.75%
|
| Cusip: | 780082665
|
© 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.
