By Marisa Wong
Morgantown, W.Va., Sept. 6 – Royal Bank of Canada priced $2 million of autocallable contingent coupon barrier notes due Sept. 2, 2021 linked to the lesser performing of two stocks, Eli Lilly & Co. and Merck & Co., Inc., according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes will pay a contingent quarterly coupon at an annual rate of 8% if each stock closes at or above its 60% barrier level on an observation date for that quarter.
The notes will be called at par if each stock closes at or above its initial level on any quarterly observation date beginning in February 2017.
The payout at maturity will be par unless either stock finishes below the 60% trigger level, in which case investors will be fully exposed to any losses of the worse performing stock.
RBC Capital Markets, LLC is the underwriter.
| Issuer: | Royal Bank of Canada
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| Issue: | Autocallable contingent coupon barrier notes
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| Underlying stocks: | Eli Lilly & Co. (Symbol: LLY) and Merck & Co., Inc. (Symbol: MRK)
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| Amount: | $2 million
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| Maturity: | Sept. 2, 2021
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| Coupon: | 8%, payable each quarter that each stock closes at or above barrier level on observation date for that quarter
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| Price: | Par of $1,000
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| Payout at maturity: | Par unless either stock finishes below trigger level, in which case full exposure to decline of worse performing stock
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| Call: | At par if each stock closes at or above initial level on any quarterly observation date beginning in February 2017
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| Initial prices: | $78.60 for Eli Lilly, $63.01 for Merck
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| Barrier/trigger prices: | $47.16 for Eli Lilly and $37.81 for Merck; 60% of initial prices
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| Pricing date: | Aug. 29
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| Settlement date: | Sept. 2
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| Underwriter: | RBC Capital Markets, LLC
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| Fees: | 2.75%
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| Cusip: | 78012KSZ1
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