Published on 6/30/2017 in the Prospect News Structured Products Daily.
New Issue: RBC sells $769,000 20.25% contingent coupon autocallables on two stocks
By Susanna Moon
Chicago, June 30 – Royal Bank of Canada priced $769,000 of autocallable contingent coupon barrier notes due June 13, 2019 linked to the lesser performing of the common stocks of Marathon Oil Corp. and Valero Energy Corp., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annual rate of 20.25% if each stock closes at or above its 70% coupon barrier on the observation date for that quarter.
The notes will be called if each stock closes at or above its initial level on any interest payment date.
The payout at maturity will be par plus the final coupon unless either stock finishes below its 70% trigger level, in which case investors will lose 1% for each 1% decline of the worse performing stock.
RBC Capital Markets, LLC is the underwriter.
| Issuer: | Royal Bank of Canada
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| Issue: | Autocallable contingent coupon barrier notes
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| Underlying stocks: | Marathon Oil Corp. (Symbol: MRO), Valero Energy Corp. (Symbol: VLO)
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| Amount: | $769,000
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| Maturity: | June 13, 2019
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| Coupon: | 20.25%, payable quarterly if each stock closes at or above 70% coupon barrier on observation date for that quarter
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| Price: | Par
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| Payout at maturity: | Par plus final coupon unless either stock finishes below 70% trigger level, in which case 1% loss for each 1% decline of worse performing stock
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| Call: | At par if each stock closes at or above its initial level on any interest payment date beginning Sept. 11, 2017
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| Initial levels: | $12.54 for Marathon, $65.26 for Valero
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| Trigger levels: | $8.78 for Marathon, $45.68 for Valero; 70% of initial levels
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| Pricing date: | June 9
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| Settlement date: | June 14
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| Agents: | RBC Capital Markets, LLC
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| Fees: | 1.75%
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| Cusip: | 78012KW86
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