By Wendy Van Sickle
Columbus, Ohio, May 18 – Royal Bank of Canada priced $2.67 million of trigger autocallable contingent yield notes due May 21, 2020 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 an annual rate of 11% if the shares close at or above the coupon barrier, 75% of the initial share price, on the observation date for that quarter.
The notes will be automatically called at par of $10 if the stock closes at or above the initial share price on any quarterly observation date.
If the notes are not called and the final share price is greater than or equal to the 75% downside threshold, the payout at maturity will be par. Otherwise, investors will lose 1% for every 1% that the final share price is less than the initial share price.
UBS Financial Services Inc. and RBC Capital Markets, LLC are the agents.
| Issuer: | Royal Bank of Canada
|
| Issue: | Trigger autocallable contingent yield notes
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| Underlying stock: | General Motors Co.
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| Amount: | $2,674,000
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| Maturity: | May 21, 2020
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| Contingent coupon: | 11%, payable quarterly if stock closes at or above coupon barrier on observation date for that quarter
|
| Price: | Par of $10
|
| Payout at maturity: | Par unless stock finishes below downside threshold level, in which case 1% loss for each 1% decline from initial price
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| Call: | Automatically at par if stock closes at or above initial price on any quarterly observation date
|
| Initial price: | $38.03
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| Coupon barrier: | $28.52, 75% of initial price
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| Downside threshold: | $28.52, 75% of initial price
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| Pricing date: | May 16
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| Settlement date: | May 21
|
| Agents: | UBS Financial Services Inc. and RBC Capital Markets, LLC
|
| Fees: | 1.5%
|
| Cusip: | 78013Q4509
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