Published on 7/27/2015 in the Prospect News Structured Products Daily.
New Issue: RBC sells $2.1 million trigger phoenix autocallables tied to two stocks
By Toni Weeks
San Luis Obispo, Calif., July 27 – Royal Bank of Canada priced $2.1 million of trigger phoenix autocallable notes due July 27, 2018 linked to the worst performing of the common stocks of Bank of America Corp. and Wells Fargo & Co., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon of 8% per year if each stock closes at or above its coupon barrier level, 75% of its initial price, on any quarterly observation date.
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 worst-performing stock equal to $1,000 divided by its initial 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: | Trigger phoenix autocallable notes
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| Underlying stocks: | Bank of America Corp. (Symbol: BAC) and Wells Fargo & Co. (Symbol: WFC)
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| Amount: | $2.1 million
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| Maturity: | July 27, 2018
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| Coupon: | 8% per year, payable quarterly if each stock closes at or above the coupon barrier level on quarterly observation date
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| Price: | Par
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| Payout at maturity: | If each stock finishes at or above trigger level, par plus coupon; otherwise, a number of shares of the worst-performing stock equal to $1,000 divided by its initial price or, at issuer’s option, cash value of those shares
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| Call: | At par plus the contingent coupon if each stock closes at or above initial level on any quarterly observation date
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| Initial share prices: | $17.90 for BofA, $57.78 for Wells Fargo
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| Trigger/barrier price: | $13.43 for BofA, $43.34 for Wells Fargo, 75% of initial share price
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| Pricing date: | July 24
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| Settlement date: | July 29
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| Agent: | RBC Capital Markets, LLC
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| Fees: | 2.25%
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| Cusip: | 78013GAD7
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