By Kiku Steinfeld
Chicago, March 1 – Royal Bank of Canada priced $1 million phoenix autocallable notes with memory coupon due March 1, 2022 linked to Wells Fargo & Co. shares, according to a 424B2 filing with the Securities and Exchange Commission.
If the stock closes at or above the barrier level, 70% of the initial level, on a quarterly observation date, the notes will pay a contingent coupon for that quarter at an annualized rate of 12.25%, plus any previously unpaid contingent interest payments.
The notes will be called at par of $10,000 if the shares close at or above the initial share price on any observation date other than the final date.
The payout at maturity will be par plus the final coupon and any previously unpaid coupons unless the stock finishes below the 70% trigger level, in which case investors will receive a fixed number of shares equal to $10,000 divided by the initial stock price or, at the issuer’s option, the cash equivalent.
RBC Capital Markets, LLC is the agent with JPMorgan Chase Bank, NA and J.P. Morgan Securities LLC as placement agents.
| Issuer: | Royal Bank of Canada
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| Issue: | Phoenix autocallable notes with memory coupon
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| Underlying stock: | Wells Fargo & Co.
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| Amount: | $1 million
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| Maturity: | March 1, 2022
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| Coupon: | 12.25% annualized, plus any previously unpaid coupons, if index closes at or above barrier level on quarterly observation date
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| Price: | Par of $10,000
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| Payout at maturity: | Par plus contingent coupon and previously unpaid coupons if index finishes at or above trigger level; otherwise, investors will receive a fixed number of shares equal to equity ratio or, at issuer’s option, the cash equivalent
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| Call: | At par plus contingent coupon and previously unpaid coupons if index closes at or above initial level on a quarterly observation date
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| Initial price: | $32.5792
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| Barrier/trigger price: | $22.81, 70% of initial price
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| Equity ratio: | 306.94
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| Pricing date: | Feb. 12
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| Settlement date: | Feb. 18
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| Agent: | RBC Capital Markets, LLC
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| Placement agents: | JPMorgan Chase Bank, NA and J.P. Morgan Securities
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| Fees: | 1%
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| Cusip: | 78013GJ22
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