By William Gullotti
Buffalo, N.Y., July 8 – Royal Bank of Canada priced $3.87 million of autocallable contingent coupon barrier notes due May 31, 2024 linked to an equally weighted basket of the stocks of Devon Energy Corp. and Occidental Petroleum Corp., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annual rate of 9.5% if the basket closes at or above its 50% coupon barrier on the relevant observation date.
The notes will be automatically called at par plus the coupon if the basket closes above its initial share price on any quarterly call observation date after six months.
The payout at maturity will be par plus the final coupon unless the basket finishes below its 50% knock-in level, in which case investors will be fully exposed to the basket’s decline from its initial level.
RBC Capital Markets, LLC is the agent.
| Issuer: | Royal Bank of Canada
|
| Issue: | Autocallable contingent coupon barrier notes
|
| Underlying basket: | Devon Energy Corp., Occidental Petroleum Corp.; equal weights
|
| Amount: | $3,867,000
|
| Maturity: | May 31, 2024
|
| Coupon: | 9.5%, payable quarterly if the basket closes at or above coupon barrier on the corresponding observation date
|
| Price: | Par
|
| Payout at maturity: | Par plus the final coupon unless basket finishes below its knock-in level, in which case full exposure to loss
|
| Call: | Automatically at par plus coupon if basket closes at or above initial share price on any quarterly call observation date after six months
|
| Initial prices: | $25.80 for Devon, $24.62 for Occidental
|
| Coupon barrier: | 50% of initial level
|
| Knock-in level: | 50% of initial level
|
| Pricing date: | May 25
|
| Settlement date: | May 28
|
| Agent: | RBC Capital Markets, LLC
|
| Fees: | 2.25%
|
| Cusip: | 78016EZ83
|
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