Published on 7/7/2016 in the Prospect News Structured Products Daily.
New Issue: RBC prices $850,000 contingent coupon autocallables on two stocks
By Wendy Van Sickle
Columbus, Ohio, July 7 – Royal Bank of Canada priced $850,000 of autocallable contingent coupon barrier notes due Jan. 5, 2017 linked to the worse performing of two stocks, the Walt Disney Co. and Lincoln National Corp., according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes will pay a contingent coupon of 14.5% per year if each stock closes at or above its coupon barrier level, 80% of its initial price, on the observation date for that quarter.
The notes will be called at par if each stock closes at or above its initial price on any quarterly observation date.
If the notes are not called and each stock finishes at or above its 75% trigger level, the payout at maturity will be par plus the final contingent coupon. Otherwise, investors will receive a number of shares of the worse performing stock equal to $1,000 divided by the initial share price or, at the issuer’s option, the cash value of those shares.
RBC Capital Markets, LLC is the agent.
| Issuer: | Royal Bank of Canada
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| Issue: | Autocallable contingent coupon barrier notes
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| Underlying stocks: | Walt Disney Co. (Symbol: DIS), Lincoln National Corp. (Symbol: LNC)
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| Amount: | $850,000
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| Maturity: | Jan. 5, 2017
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| Coupon: | 14.5% per year, payable quarterly if each stock closes at or above coupon barrier on observation date for that quarter
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| Price: | Par
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| Payout at maturity: | If each stock finishes at or above its trigger level, par plus the final contingent coupon; otherwise, a number of shares of the worse performing stock equal to $1,000 divided by the initial share price or, at the issuer’s option, the cash value of those shares
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| Call: | Automatically at par if each stock closes at or above initial price on any quarterly observation date
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| Initial prices: | $97.82 for Disney, $38.77 for Lincoln National
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| Trigger/coupon barrier: | $78.27 for Disney and $31.02 for Lincoln National; 80% of initial prices
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| Pricing date: | June 30
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| Settlement date: | July 5
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| Agent: | RBC Capital Markets LLC
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| Fees: | 1.75%
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| Cusip: | 78013GBD6
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