By Susanna Moon
Chicago, Sept. 15 – Royal Bank of Canada priced $893,000 of trigger phoenix autocallable optimization securities due Sept. 17, 2018 linked to Home Depot, Inc. shares, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annual rate of 8% if Home Depot stock closes at or above the coupon barrier level, 75.5% of the initial price, on the observation 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 price on any observation date beginning March 11, 2016.
The payout at maturity will be par plus the contingent coupon unless Home Depot shares finish below the 75.5% trigger level, in which case investors will be fully exposed to any losses.
RBC Capital Markets, LLC and UBS Financial Services Inc. are the agents.
| Issuer: | Royal Bank of Canada
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| Issue: | Trigger phoenix autocallable optimization securities
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| Underlying stock: | Home Depot, Inc. (Symbol: HD)
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| Amount: | $893,000
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| Maturity: | Sept. 17, 2018
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| Coupon: | 8% per year, payable quarterly if stock closes at or above coupon barrier price on observation date for that quarter
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| Price: | Par
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| Payout at maturity: | Par plus the contingent coupon unless shares finish below the trigger price, in which case full exposure to losses
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| Call: | At par plus the contingent coupon if the shares close at or above the initial price on any quarterly observation beginning March 11, 2016
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| Initial price: | $115.44
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| Trigger level: | 75.5% of initial level
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| Pricing date: | Sept. 11
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| Settlement date: | Sept. 16
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| Agents: | RBC Capital Markets, LLC and UBS Financial Services Inc.
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| Fees: | 2%
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| Cusip: | 78013D714
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