By Wendy Van Sickle
Columbus, Ohio, July 5 – Royal Bank of Canada priced $2.48 million of autocallable contingent coupon barrier notes with memory coupon due July 3, 2025 linked to an equally weighted basket of the stocks of Occidental Petroleum Corp. and Marathon Oil 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 13.25% if the basket closes at or above its 50% coupon barrier on the relevant observation date, plus any previously unpaid coupon.
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 if the basket finishes at or above the 50% knock-in level. Otherwise, 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
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| Issue: | Autocallable contingent coupon barrier notes with memory coupon
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| Underlying basket: | Occidental Petroleum Corp., Marathon Oil Corp.; equal weights
|
| Amount: | $2,482,000
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| Maturity: | July 3, 2025
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| Coupon: | 13.25%, payable quarterly if the basket closes at or above coupon barrier on the corresponding observation date, plus any previously unpaid coupon
|
| Price: | Par
|
| Payout at maturity: | Par plus the final coupon if basket finishes at or above knock-in level; otherwise, full exposure to basket decline from initial level
|
| Call: | Automatically at par plus coupon if basket closes at or above initial share price on any quarterly call observation date after six months
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| Initial prices: | $61.71 for Occidental Petroleum, $24.13 for Marathon Oil
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| Coupon barrier: | 50% of initial level
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| Knock-in level: | 50% of initial level
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| Pricing date: | June 28
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| Settlement date: | June 30
|
| Agent: | RBC Capital Markets, LLC
|
| Fees: | 2.25%
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| Cusip: | 78016FMS0
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