By Wendy Van Sickle
Columbus, Ohio, Jan. 20 – Royal Bank of Canada priced $2.3 million of contingent income autocallable securities due July 20, 2016 linked to lululemon athletica Inc. shares, according to a 424B2 filed with the Securities and Exchange Commission.
The notes will pay a contingent monthly coupon at an annual rate of 18% if the stock closes at or above the coupon barrier level, 75% of the initial share price, on a determination date that month.
The notes will be called at par of $10 plus the contingent coupon if the shares close at or above the initial share price on any of the first five determination dates.
The payout at maturity will be par plus the final contingent coupon unless the stock finishes below the 75% trigger level, in which case investors will be fully exposed to the loss.
RBC Capital Markets, LLC is the agent. Morgan Stanley Wealth Management is handling distribution.
| Issuer: | Royal Bank of Canada
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| Issue: | Contingent income autocallable securities
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| Underlying stock: | lululemon athletica Inc. (Symbol: LULU)
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| Amount: | $2,303,200
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| Maturity: | July 20, 2016
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| Coupon: | 18% annual rate each month if shares close at or above barrier level on determination date for that month
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| Price: | Par of $10
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| Payout at maturity: | If final share price is greater than or equal to trigger level, par plus final contingent coupon; otherwise, full exposure to the loss
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| Call: | At par plus contingent coupon if shares close at or above the initial share price on any of the first five determination dates
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| Initial share price: | $55.71
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| Trigger/coupon barrier level: | $41.78, 75% of initial share price
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| Pricing date: | Jan. 15
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| Settlement date: | Jan. 21
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| Agent: | RBC Capital Markets, LLC
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| Distribution: | Morgan Stanley Wealth Management
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| Fees: | 1.25%
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| Cusip: | 78013C567
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