By Jennifer Chiou
New York, Oct. 12 - Royal Bank of Canada priced $26,840,830 of contingent income autocallable securities due Oct. 16, 2013 linked to the common stock of Las Vegas Sands Corp., according to a 424B2 filing with the Securities and Exchange Commission.
If Las Vegas Sands stock closes at or above the downside threshold level on a quarterly determination date, investors will receive a contingent payment of $0.3963 for each $10.00 note that quarter. The downside threshold level is 70% of the initial share price.
If Las Vegas Sands stock closes at or above the initial share price on any of the first three quarterly determination dates, the notes will be redeemed at par plus the contingent payment.
If the notes are not called, the payout at maturity will be par plus the contingent payment unless the final share price is less than the downside threshold level, in which case the payout will be a number of Las Vegas Sands shares equal to $10.00 divided by the initial share price or, at the issuer's option, a cash amount equal to the value of those shares.
RBC Capital Markets, LLC is the agent with Morgan Stanley Smith Barney LLC as dealer.
| Issuer: | Royal Bank of Canada
|
| Issue: | Contingent income autocallable securities
|
| Underlying stock: | Las Vegas Sands Corp. (NYSE: LVS)
|
| Amount: | $26,840,830
|
| Maturity: | Oct. 16, 2013
|
| Contingent payment: | $0.3963 per note per quarter if Las Vegas Sands stock closes at or above downside threshold level on determination date for that quarter
|
| Price: | Par of $10.00
|
| Payout at maturity: | If final share price is less than downside threshold level, 0.2321 Las Vegas Sands shares or, at issuer's option, cash amount equal to value of those shares; otherwise, par plus contingent payment
|
| Call: | Automatically at par plus contingent payment if Las Vegas Sands stock closes at or above initial share price on any of the first three quarterly determination dates
|
| Initial share price: | $43.09
|
| Downside threshold: | $30.16, 70% of initial share price
|
| Pricing date: | Oct. 10
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| Settlement date: | Oct. 16
|
| Agent: | RBC Capital Markets, LLC
|
| Dealer: | Morgan Stanley Smith Barney LLC
|
| Fees: | 1.5%
|
| Cusip: | 78008W388
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