New Issue: RBC prices $2.9 million contingent coupon autocallables linked to stocks

By Angela McDaniels

Tacoma, Wash., July 31 – Royal Bank of Canada priced $2.9 million of autocallable contingent coupon barrier notes due July 30, 2020 linked to the least performing of the common stocks of Costco Wholesale Corp., Home Depot Inc. and Nike Inc., according to a 424B2 filing with the Securities and Exchange Commission.

Each quarter, the notes pay a contingent coupon at the rate of 8.2% per year if each stock closes at or above its trigger price, 65% of its initial price, on the observation date for that quarter.

Beginning April 13, 2018, the notes will be automatically called at par if each stock closes at or above its initial share price on any quarterly observation date.

The payout at maturity will be par unless any stock finishes below its trigger price, in which case investors will receive a number of shares of the least-performing stock equal to $1,000 divided by its initial share price or, at the issuer’s option, an amount in cash equal to the value of those shares.

RBC Capital Markets, LLC is the underwriter.

Issuer:	Royal Bank of Canada
Issue:	Autocallable contingent coupon barrier notes
Underlying stocks:	Costco Wholesale Corp. (Symbol: COST), Home Depot Inc. (Symbol: HD) and Nike Inc. (Symbol: NKE)
Amount:	$2.9 million
Maturity:	July 30, 2020
Coupon:	8.2% per year, payable quarterly if each stock closes at or above trigger price on observation date for that quarter
Price:	Par
Payout at maturity:	Par unless any stock finishes below trigger price, in which case number of shares of least-performing stock equal to $1,000 divided by initial share price or, at issuer’s option, amount in cash equal to value of those shares
Call:	Beginning April 13, 2018, automatically at par if each stock closes at or above initial share price on any quarterly observation date
Initial share prices:	$152.52 for Costco, $147.73 for Home Depot and $58.15 for Nike
Trigger prices:	$99.14 for Costco, $96.03 for Home Depot and $37.80 for Nike; 65% of initial prices
Pricing date:	July 27
Settlement date:	July 31
Underwriter:	RBC Capital Markets, LLC
Fees:	2.25%
Cusip:	78013GEN1

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