By Wendy Van Sickle
Columbus, Ohio, Oct. 18 – Royal Bank of Canada priced $2.23 million of phoenix autocallable notes due Oct. 31, 2017 linked to the common stock of General Motors Co., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annual rate of 12.2% if the stock closes at or above its coupon barrier, 75% of its initial price, on the observation date for that quarter.
The notes will be called at par plus the contingent coupon if the stock closes at or above its initial level on any observation date other than the final one.
The payout at maturity will be par unless the stock finishes below its 80% trigger price, in which case investors will lose 1% for each 1% decline.
The final share price will be the average of the closing share prices on each of the five averaging dates ending Oct. 26, 2017.
RBC Capital Markets, LLC is the agent. JPMorgan Chase Bank, NA and J.P. Morgan Securities LLC are the placement agents.
| Issuer: | Royal Bank of Canada
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| Issue: | Phoenix autocallable notes
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| Underlying stock: | General Motors Co.
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| Amount: | $2,227,000
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| Maturity: | Oct. 31, 2017
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| Coupon: | 12.2% per year, payable each quarter that stock closes at or above the barrier price on the observation date for that quarter
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| Price: | Par
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| Payout at maturity: | If the stock finishes at or above its trigger price, par; otherwise, full exposure to loss
|
| Call: | Automatically at par plus any contingent interest if the stock closes at or above its initial price on any quarterly observation date other than the final one
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| Initial price: | $31.87
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| Barrier/trigger price: | $23.90, 75% of initial price
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| Final price: | Average of closing share prices for five averaging dates ending Oct. 26, 2017
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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%
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| Cusip: | 78012KUQ8
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