By Wendy Van Sickle
Columbus, Ohio, May 24 – Royal Bank of Canada priced $2.8 million of trigger phoenix autocallable notes due May 23, 2019 linked to the common stock of Apple 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 8.4% if Apple stock closes at or above the trigger price, 80% of the initial price, on the observation date for that quarter.
If the shares close at or above the initial price on any quarterly observation date on or after May 22, 2017, the notes will be called at par of $1,000 plus the contingent coupon.
The payout at maturity will be par plus the contingent coupon unless Apple shares finish below the 70% trigger price, in which case investors will receive a number of Apple shares equal to the principal divided by the initial share price, or at the company’s option, the cash equivalent.
RBC Capital Markets, LLC is the agent.
| Issuer: | Royal Bank of Canada
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| Issue: | Trigger phoenix autocallable notes
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| Underlying stock: | Apple Inc. (Nasdaq: AAPL)
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| Amount: | $2.8 million
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| Maturity: | May 23, 2019
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| Coupon: | 8.4%, payable quarterly if stock closes at or above trigger price on observation date for that quarter
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| Price: | Par of $10.00
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| Payout at maturity: | Par plus contingent coupon if Apple shares finish at or above trigger price; otherwise Apple shares equal to the principal divided by the initial share price
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| Call: | Automatically at par plus contingent coupon if Apple shares close at or above initial price on a quarterly observation date beginning May 22, 2017
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| Initial share price: | $95.22
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| Coupon barrier: | $76.18, 80% of initial price
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| Trigger price: | $66.65, 70% of initial price
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| Pricing date: | May 20
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| Settlement date: | May 25
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| Underwriters: | RBC Capital Markets, LLC
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| Fees: | 2.75 %
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| Cusip: | 78013GAX3
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