By Angela McDaniels
Tacoma, Wash., July 17 – Royal Bank of Canada priced $3.17 million of trigger autocallable contingent yield notes due July 18, 2018 linked to the common stock of Valero Energy Corp., according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes pay a contingent coupon at the rate of 11% per year if Valero shares close at or above the downside threshold level, 80% of the initial share price, on the observation date for that quarter.
The notes will be automatically called at par of $10 if Valero shares close at or above the initial share price on any quarterly observation date.
If the notes are not called and the final share price is greater than or equal to the downside threshold level, the payout at maturity will be par. Otherwise, investors will lose 1% for every 1% that the final share price is less than the initial share price.
UBS Financial Services Inc. and RBC Capital Markets, LLC are the agents.
| Issuer: | Royal Bank of Canada
|
| Issue: | Trigger autocallable contingent yield notes
|
| Underlying stock: | Valero Energy Corp. (Symbol: VLO)
|
| Amount: | $3,165,000
|
| Maturity: | July 18, 2018
|
| Coupon: | Each quarter, notes pay contingent coupon at rate of 11% per year if shares close at or above downside threshold level on observation date for that quarter
|
| Price: | Par of $10.00
|
| Payout at maturity: | If notes are not called and final share price is greater than or equal to downside threshold level, par; otherwise, 1% loss for every 1% that final share price is less than initial share price
|
| Call: | Automatically at par if Valero shares close at or above initial share price on any quarterly observation date
|
| Initial share price: | $67.78
|
| Downside threshold: | $54.22, 80% of initial share price
|
| Pricing date: | July 13
|
| Settlement date: | July 18
|
| Agents: | UBS Financial Services Inc. and RBC Capital Markets, LLC
|
| Fees: | 1.5%
|
| Cusip: | 78013F149
|
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