By Toni Weeks
San Luis Obispo, Calif., Oct. 15 - Royal Bank of Canada priced $1.65 million of 0% contingent absolute return autocallable optimization securities due Oct. 20, 2014 linked to Yahoo! Inc. shares, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will be called at par plus an annualized call premium of 12.5% if Yahoo! stock closes at or above the initial share price on any quarterly observation date.
If the notes are not called and the final share price is at or above the 75% trigger level, the payout at maturity will be par plus the absolute value of the return.
Otherwise, investors will be fully exposed to any losses.
RBC Capital Markets, LLC and UBS Financial Services Inc. are the agents.
| Issuer: | Royal Bank of Canada
|
| Issue: | Contingent absolute return autocallable optimization securities
|
| Underlying stock: | Yahoo! Inc. (Symbol: YHOO)
|
| Amount: | $1,649,000
|
| Maturity: | Oct. 20, 2014
|
| Coupon: | 0%
|
| Price: | Par of $10.00
|
| Payout at maturity: | If final share price is greater than or equal to trigger price, par plus absolute value of stock return; otherwise, full exposure to stock decline
|
| Call: | At par plus 12.5% per year if Yahoo! stock closes at or above initial share price on any quarterly observation date
|
| Initial share price: | $34.15
|
| Trigger price: | $25.61, 75% of initial share price
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| Pricing date: | Oct. 11
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| Settlement date: | Oct. 17
|
| Agents: | RBC Capital Markets, LLC and UBS Financial Services Inc.
|
| Fees: | 1.5%
|
| Cusip: | 78009Q687
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