By William Gullotti
Buffalo, N.Y., Oct. 19 – Royal Bank of Canada priced $3.88 million of phoenix autocallable notes with memory coupon due Oct. 19, 2023 linked to Capital One Financial Corp. shares, according to a 424B2 filing with the Securities and Exchange Commission.
If the stock closes at or above the barrier level, 66% of the initial level, on a quarterly observation date, the notes will pay a contingent coupon for that quarter at an annualized rate of 8%, plus any previously unpaid contingent coupon payments.
The notes will be called at par plus the coupon and any previously unpaid coupons if the shares close at or above the initial share price on any observation date other than the final date.
The payout at maturity will be par plus the final coupon and any unpaid coupons unless the stock finishes below the 66% trigger level, in which case investors will be exposed to the decline of the stock.
RBC Capital Markets, LLC is the agent. JPMorgan Chase Bank, NA and J.P. Morgan Securities LLC are acting as placement agents.
| Issuer: | Royal Bank of Canada
|
| Issue: | Phoenix autocallable notes with memory coupon
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| Underlying stock: | Capital One Financial Corp.
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| Amount: | $3,875,000
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| Maturity: | Oct. 19, 2023
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| Coupon: | 8% annualized, paid quarterly, plus any previously unpaid coupons if stock closes at or above barrier level on quarterly observation date
|
| Price: | Par
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| Payout at maturity: | Par plus final coupon and any unpaid coupons if stock finishes at or above trigger level; otherwise, investors will be exposed to the decline of the stock
|
| Call: | At par plus coupon and any unpaid coupons if stock closes at or above initial level on any quarterly observation date
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| Initial price: | $166.01
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| Barrier/trigger price: | $109.57; 66% of initial price
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| Pricing date: | Oct. 14
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| Settlement date: | Oct. 19
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| Agent: | RBC Capital Markets, LLC,
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| Placement agents: | JPMorgan Chase Bank, NA and J.P. Morgan Securities LLC
|
| Fees: | 1.5%
|
| Cusip: | 78016F3Q5
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