By Kiku Steinfeld
Chicago, March 15 – Royal Bank of Canada priced $2.56 million of autocallable contingent coupon barrier notes with memory coupon due March 2, 2022 linked to the common stock of Caterpillar Inc., according to a 424B2 filing with the Securities and Exchange Commission.
The notes pay a contingent quarterly coupon at the rate of 9% per year if the stock closes at or above its trigger price, 76% of its initial price, on the observation date for that quarter, in which case any previously unpaid coupons will also be paid.
The notes will be called at par if the stock closes at or above its initial share price on any quarterly observation date other than the final one.
If the notes are not called, the payout at maturity will be par unless the stock finishes below its 76% trigger price, in which case investors will receive a fixed number of shares of the stock equal to the $1,000 principal amount divided by the initial price or, at the issuer’s option, the cash equivalent.
RBC Capital Markets, LLC is the agent.
| Issuer: | Royal Bank of Canada
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| Issue: | Autocallable contingent coupon barrier notes with memory coupon
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| Underlying stock: | Caterpillar Inc.
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| Amount: | $2,556,000
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| Maturity: | March 2, 2022
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| Coupon: | 9%, payable quarterly plus any previously unpaid coupons if stock closes at or above trigger price on observation date for that quarter
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| Price: | Par
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| Payout at maturity: | Par unless stock finishes below trigger price, in which case 4.51 shares or cash
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| Call: | At par if stock closes at or above initial share price on any quarterly observation date other than final one
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| Initial share price: | $221.82
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| Trigger price: | $168.58, 76% of initial share price
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| Pricing date: | Feb. 25
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| Settlement date: | March 2
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| Agent: | RBC Capital Markets, LLC
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| Fees: | 2%
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| Cusip: | 78013GH65
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