By Jennifer Chiou
New York, March 19 - Royal Bank of Canada priced $7,523,750 of contingent income autocallable securities due March 19, 2015 linked to Williams Cos., Inc. shares, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon of 2.4% if Williams Cos. stock closes at or above the trigger level, 80% of the initial share price, on any quarterly determination date.
The notes will be redeemed at par of $10 plus the contingent coupon if the stock closes at or above the initial share price on any of the first three quarterly determination dates.
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 plus the contingent coupon.
Otherwise, the payout will be a number of Williams Cos. shares equal to $10 divided by the initial share price or, at the issuer's option, the cash equivalent.
RBC Capital Markets, LLC is the agent with Morgan Stanley Wealth Management as distributot.
| Issuer: | Royal Bank of Canada
|
| Issue: | Contingent income autocallable securities
|
| Underlying stock: | Williams Cos., Inc. (Symbol: WMB)
|
| Amount: | $7,523,750
|
| Maturity: | March 19, 2015
|
| Coupon: | 2.4% for each quarter that Williams Cos. stock closes at or above trigger level on any quarterly determination date
|
| Price: | Par of $10
|
| Payout at maturity: | If stock finishes at or above trigger level, par plus contingent coupon; otherwise, 0.2415 Williams Cos. shares
|
| Call: | At par plus contingent coupon if stock closes at or above initial share price on any of first three quarterly determination dates
|
| Initial price: | $41.41
|
| Trigger level: | $33.13, 80% of initial price
|
| Pricing date: | March 14
|
| Settlement date: | March 19
|
| Agent: | RBC Capital Markets, LLC with Morgan Stanley Wealth Management as distributor
|
| Fees: | 1.5%
|
| Cusip: | 78010Y778
|
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