Published on 2/19/2019 in the Prospect News Structured Products Daily.
New Issue: RBC prices $1.61 million 11% callable notes on three pharma stocks
By Marisa Wong
Morgantown, W.Va., Feb. 19 – Royal Bank of Canada priced $1.61 million of issuer callable fixed coupon notes due Feb. 19, 2021 linked to the worst performing of the common stocks of Allergan plc, Bristol-Myers Squibb Co. and Gilead Sciences, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a monthly coupon at an annual rate of 11%.
The issuer may call the notes at par on any coupon payment date after six months.
The payout at maturity will be par unless any stock finishes below its initial price and any stock closes below the 50% barrier level on any day during the life of the notes, in which case investors will receive a number of shares of the worst-performing stock equal to $1,000 divided by that stock’s initial price or, at the issuer’s option, the cash value of those shares.
RBC Capital Markets, LLC is the agent.
| Issuer: | Royal Bank of Canada
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| Issue: | Issuer callable fixed coupon notes
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| Underlying stocks: | Allergan plc (Symbol: AGN), Bristol-Myers Squibb Co. (Symbol: BMY) and Gilead Sciences, Inc. (Symbol: GILD)
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| Amount: | $1.61 million
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| Maturity: | Feb. 19, 2021
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| Coupon: | 11%, payable monthly
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| Price: | Par
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| Payout at maturity: | Par unless any stock finishes below its initial price and any stock closes below the barrier price on any day during the life of the notes, in which case a number of shares of the worst-performing stock equal to $1,000 divided by that stock’s initial price or, at the issuer’s option, the cash value of those shares.
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| Call option: | At par on any coupon payment date after six months
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| Initial prices: | $140.33 for Allergan, $50.98 for Bristol-Myers, $65.94 for Gilead
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| Barrier prices: | $70.17 for Allergan, $25.49 for Bristol-Myers, $32.97 for Gilead; 50% of initial prices
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| Pricing date: | Feb. 13
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| Settlement date: | Feb. 19
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| Agent: | RBC Capital Markets, LLC
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| Fees: | 1.85%
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| Cusip: | 78013GHP3
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