By Jennifer Chiou
New York, Aug. 12 – Royal Bank of Canada priced $1,939,000 of phoenix autocallable notes due Aug. 26, 2015 linked to the common stock of Gilead Sciences, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
If Gilead Sciences stock closes at or above the coupon barrier – 80% of the initial share price – on a quarterly observation date, the issuer will pay a contingent coupon for that quarter at the rate of 16.4%. Otherwise, no coupon will be paid that quarter.
If the shares close at or above the initial price on any quarterly observation date, the notes will be called at par plus the contingent coupon.
If the notes are not called and Gilead Sciences shares finish at or above the 80% trigger price, the payout at maturity will be par plus the contingent coupon. Otherwise, investors will be exposed to the share price decline from the initial price.
RBC Capital Markets, LLC is the underwriter with J.P. Morgan Securities LLC as placement agent.
| Issuer: | Royal Bank of Canada
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| Issue: | Phoenix autocallable notes
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| Underlying stock: | Gilead Sciences, Inc. (Nasdaq: GILD)
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| Amount: | $1,939,000
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| Maturity: | Aug. 26, 2015
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| Coupon: | 16.4%, payable quarterly if stock closes at or above coupon barrier on observation date for that quarter
|
| Price: | Par of $10.00
|
| Payout at maturity: | Par plus contingent coupon if Gilead shares finish at or above coupon barrier; par if shares finish below coupon barrier but at or above trigger price; otherwise, par plus stock return
|
| Call: | Automatically at par plus contingent coupon if Gilead shares close at or above initial price on any quarterly observation date
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| Initial share price: | $92.45
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| Coupon barrier/trigger: | $73.96, 80% of initial price
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| Pricing date: | Aug. 8
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| Settlement date: | Aug. 13
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| Underwriter: | RBC Capital Markets, LLC with J.P. Morgan Securities LLC
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| Fees: | 1%
|
| Cusip: | 78010US32
|
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