By Wendy Van Sickle
Columbus, Ohio, Aug. 22 – Royal Bank of Canada priced $3.63 million of contingent income autocallable securities due Aug. 23, 2018 linked to Halliburton Co. stock, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annualized rate of 9.9% if the stock closes at or above the downside threshold, 80% of the initial share price, on a determination date for that quarter.
The notes will be called at par of $10 plus the contingent coupon if the shares close at or above the initial level on any of the first three determination dates.
The payout at maturity will be par unless the stock finishes below its 80% downside threshold, in which case investors will be fully exposed to any losses.
RBC Capital Markets, LLC is the agent. Morgan Stanley Smith Barney LLC is handling distribution.
| Issuer: | Royal Bank of Canada
|
| Issue: | Contingent income autocallable securities
|
| Underlying stock: | Halliburton Co.
|
| Amount: | $3,630,240
|
| Maturity: | Aug. 23, 2018
|
| Coupon: | 9.9% per year, payable quarterly if shares close at or above downside threshold level on determination date for that quarter
|
| Price: | Par
|
| Payout at maturity: | If stock finishes at or above downside threshold, par; otherwise, full exposure to any losses
|
| Call: | At par plus contingent coupon if shares close at or above initial level on any of the first three determination dates
|
| Initial share price: | $38.99
|
| Downside threshold: | $31.19, 80% of initial share price
|
| Pricing date: | Aug. 18
|
| Settlement date: | Aug. 23
|
| Agent: | RBC Capital Markets, LLC
|
| Dealer: | Morgan Stanley Smith Barney LLC
|
| Fees: | 1.75%
|
| Cusip: | 78013F289
|
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