By Susanna Moon
Chicago, July 5 – Royal Bank of Canada priced $685,000 of autocallable contingent coupon barrier notes due June 13, 2019 linked to the commons stocks of Devon Energy 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 17% 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 be fully exposed to any losses 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 stock: | Devon Energy Corp. (Symbol: DVN), Valero Energy Corp. (Symbol: VLO)
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| Amount: | $685,000
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| Maturity: | June 13, 2019
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| Coupon: | 17%, 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 the 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 Dec. 11, 2017
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| Initial levels: | $32.58 for Devon and $65.26 for Valero
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| Trigger levels: | $22.81 for Devon and $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: | 78012KW94
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