By Susanna Moon
Chicago, July 1 – Royal Bank of Canada priced $1.75 million of phoenix autocallable notes due July 15, 2015 linked to Mylan, Inc. shares, according to a 424B2 filing with the Securities and Exchange Commission.
If Mylan stock closes at or above the 80% barrier level on a quarterly observation date, the notes will pay a contingent coupon at an annualized rate of 14.8% for that quarter.
If the shares close at or above the initial price on any quarterly observation date, the notes will be called at par plus the contingent coupon.
If the notes are not called and Mylan shares finish at or above the 80% trigger price, the payout at maturity will be par plus the contingent coupon.
Otherwise, investors will fully exposed to any losses.
RBC Capital Markets, LLC is the underwriter with J.P. Morgan Securities LLC as the placement agent.
| Issuer: | Royal Bank of Canada
|
| Issue: | Phoenix autocallable notes
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| Underlying stock: | Mylan Inc. (Symbol: MYL)
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| Amount: | $1,753,000
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| Maturity: | July 15, 2015
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| Coupon: | 14.8% per year, payable quarterly if stock closes at or above barrier level on observation date for that quarter
|
| Price: | Par
|
| Payout at maturity: | Par plus contingent coupon if Mylan shares finish at or above trigger price; otherwise, full exposure to any losses
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| Call: | At par plus contingent coupon if Mylan shares close at or above initial price on any quarterly observation date
|
| Initial share price: | $51.51
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| Barrier/trigger price: | $41.21, 80% of initial share price
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| Pricing date: | June 27
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| Settlement date: | July 2
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| Agents: | RBC Capital Markets, LLC with J.P. Morgan Securities LLC as placement agent
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| Fees: | 1%
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| Cusip: | 78010UH26
|
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