By Susanna Moon
Chicago, Feb. 19 – Royal Bank of Canada priced $1.1 million of trigger phoenix autocallable optimization securities due Aug. 22, 2016 linked to the common stocks of Alphabet, Inc. and Amazon.com, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annual rate of 13.85% if each stock closes at or above its trigger level, 75% of the initial level, on an observation date for that quarter.
The notes will be called at par plus the contingent coupon if each stock closes at or above the initial price on a quarterly observation date.
The payout at maturity will be par plus the contingent coupon unless either stock finishes below the trigger level, in which case investors will receive a number of shares of the worse performing stock equal to $1,000 divided by the initial share price.
RBC Capital Markets, LLC is the underwriter.
| Issuer: | Royal Bank of Canada
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| Issue: | Trigger phoenix autocallable optimization securities
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| Underlying stock: | Alphabet, Inc. (Symbol: GOOGL) and Amazon.com, Inc. (Symbol: AMZN)
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| Amount: | $1.1 million
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| Maturity: | Aug. 22, 2016
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| Coupon: | 13.85% per year, payable quarterly if each 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 plus contingent coupon if each stock finishes at or above trigger price; otherwise, number of shares of the worse performing stock equal to $1,000 divided by the initial share price.
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| Call: | At par plus contingent coupon if each stock closes at or above initial price on any quarterly observation date
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| Initial level: | $731.97 for Alphabet, $534.10 for Amazon
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| Trigger level: | $548.98 for Alphabet, $400.58 for Amazon; 75% of initial share price
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| Pricing date: | Feb. 17
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| Settlement date: | Feb. 22
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| Underwriters: | UBS Financial Services Inc. and RBC Capital Markets, LLC
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| Fees: | 1.75%
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| Cusip: | 78013GAQ8
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