By Angela McDaniels
Tacoma, Wash., June 26 – Royal Bank of Canada priced $542,000 of autocallable contingent coupon barrier notes due June 27, 2019 linked to the common stock of General Motors Co., according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes will pay a contingent coupon at the rate of 7.9% per year if the stock closes at or above its trigger price, 75% of its initial price, on the observation date for that quarter.
Beginning Dec. 26, the notes will be called at par if the stock closes at or above its initial share price on any quarterly observation date.
The payout at maturity will be par unless the stock finishes below its trigger price, in which case investors will lose 1% for every 1% that GM shares decline from the initial share price.
RBC Capital Markets, LLC is the underwriter.
| Issuer: | Royal Bank of Canada
|
| Issue: | Autocallable contingent coupon barrier notes
|
| Underlying stock: | General Motors Co. (Symbol: GM)
|
| Amount: | $542,000
|
| Maturity: | June 27, 2019
|
| Coupon: | 7.9%, payable quarterly if stock closes at or above trigger price on observation date for that quarter
|
| Price: | Par
|
| Payout at maturity: | Par unless stock finishes below trigger price, in which case 1% for every 1% that GM shares decline from initial share price.
|
| Call: | Beginning Dec. 26, at par if stock closes at or above initial share price on any quarterly observation date
|
| Initial share price: | $34.20
|
| Trigger price: | $25.65, or 75% of initial share price
|
| Pricing date: | June 23
|
| Settlement date: | June 28
|
| Underwriter: | RBC Capital Markets, LLC
|
| Fees: | 1.75%
|
| Cusip: | 78012KY50
|
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