By Kiku Steinfeld
Chicago, Jan. 17 – Royal Bank of Canada priced $700,000 of contingent income autocallable securities due Dec. 22, 2022 linked to the common stock of Raytheon Technologies Corp., according to a 424B2 filing with the Securities and Exchange Commission.
The notes pay a contingent quarterly coupon at an annual rate of 7.7% if the stock closes at or above its coupon barrier price, 80% of its initial price, on the corresponding observation date.
The notes will be called at par plus coupon if the stock closes at or above its initial share price on any quarterly observation date.
If the notes are not called, the payout at maturity will be par plus the final coupon unless the stock finishes below its 80% trigger price, in which case investors will be fully exposed to the decline.
RBC Capital Markets, LLC is the agent and Morgan Stanley Wealth Management is acting as the distributor.
| Issuer: | Royal Bank of Canada
|
| Issue: | Contingent income autocallable securities
|
| Underlying stock: | Raytheon Technologies Corp.
|
| Amount: | $700,000
|
| Maturity: | Dec. 22, 2022
|
| Coupon: | 7.7% annual rate, payable quarterly if stock closes at or above trigger price on the corresponding observation date
|
| Price: | Par of $10
|
| Payout at maturity: | Par plus the final coupon unless stock finishes below trigger price, in which case full exposure to decline
|
| Call: | At par plus coupon if stock closes at or above initial share price on any quarterly observation date
|
| Initial share price: | $82.28
|
| Coupon barrier price: | $65.82; 80% of initial share price
|
| Trigger price: | $65.16; 80% of initial share price
|
| Pricing date: | Dec. 17
|
| Settlement date: | Dec. 22
|
| Agent: | RBC Capital Markets, LLC with Morgan Stanley Wealth Management as distributor
|
| Fees: | 1.75%
|
| Cusip: | 78016C127
|
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