By Wendy Van Sickle
Columbus, Ohio, April 27 – Royal Bank of Canada priced $281,000 of autocallable contingent coupon barrier notes due April 25, 2019 linked to the lesser performing of the common stocks of JPMorgan Chase & Co. and Wells Fargo & Co., according to a 424B2 filing with the Securities and Exchange Commission.
If each stock closes at or above its barrier price, 75% of the initial share price, on a quarterly observation date, the issuer will pay a contingent coupon for that quarter at the annual rate of 9.05%.
The notes will be called at par plus the contingent coupon if each stock closes at or above its initial price on a quarterly observation date after six months.
If the notes are not called, the payout at maturity will be par plus the contingent coupon unless the final share price of the lesser-performing stock is less than its 75% trigger price, in which case investors will lose 1% for every 1% that the lesser-performing stock finishes below its initial share price with the payment in shares of the lesser-performing stock, or cash at the issuer’s option.
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 stocks: | JPMorgan Chase & Co. and Wells Fargo & Co.
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| Amount: | $281,000
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| Maturity: | April 25, 2019
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| Coupon: | If each stock closes at or above its barrier price on a quarterly observation date, the issuer will pay a contingent coupon for that quarter at the annual rate of 9.05%
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| Price: | Par
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| Payout at maturity: | Par plus the contingent coupon unless the final share price of the lesser-performing stock is less than its trigger price, in which case investors will lose 1% for every 1% that the lesser-performing stock finishes below its initial share price with the payment in shares of the lesser-performing stock or cash at the issuer’s option
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| Call: | At par plus the contingent coupon if each stock closes at or above its initial price on a quarterly observation date after six months
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| Initial share prices: | $84.52 for JPMorgan and $53.00 for Wells
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| Barrier/trigger prices: | $63.39 for JPMorgan and $39.75 for Wells; 75% of initial share prices
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| Pricing date: | April 21
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| Settlement date: | April 26
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| Underwriter: | RBC Capital Markets, LLC
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| Fees: | 1.75%
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| Cusip: | 78012KK30
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