By Jennifer Chiou
New York, Jan. 13 – Royal Bank of Canada priced $7,069,000 of 0% phoenix autocallable notes due Jan. 27, 2016 linked to the common stock of Gilead Sciences, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes will pay a contingent coupon at the rate of 16.3% per year if Gilead Sciences shares close at or above the coupon barrier price, 75% of the initial share price, on the observation date for that quarter. Otherwise, no coupon will be paid for that quarter.
If the stock closes at or above the initial price on any quarterly observation date other than the final review date, the notes will be called at par plus the contingent coupon.
If the notes are not called and the shares finish at or above the 75% trigger price, the payout at maturity will be par plus the contingent coupon. Otherwise, investors will be exposed to the decline in the stock price from the initial price to the final price.
RBC Capital Markets, LLC is the underwriter with J.P. Morgan Securities LLC as placement agent.
| Issuer: | Royal Bank of Canada
|
| Issue: | Phoenix autocallable notes
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| Underlying stock: | Gilead Sciences, Inc. (Symbol: GILD)
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| Amount: | $7,069,000
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| Maturity: | Jan. 27, 2016
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| Coupon: | 16.3% per year, payable quarterly if Gilead Sciences shares close at or above barrier price on observation date for that quarter; otherwise, no coupon will be paid for that quarter
|
| Price: | Par
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| Payout at maturity: | If shares finish at or above trigger price, par plus contingent coupon; otherwise, investors will be exposed to the decline in the stock price from the initial price to the final price
|
| Call: | At par plus contingent coupon if stock closes at or above initial price on any quarterly observation date other than the final review date
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| Initial price: | $102.21
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| Barrier/trigger price: | $76.66, 75% of initial price
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| Pricing date: | Jan. 9
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| Settlement date: | Jan. 14
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| Underwriter: | RBC Capital Markets, LLC with J.P. Morgan Securities LLC as placement agent
|
| Fees: | 1%
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| Cusip: | 78012KAN7
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