By William Gullotti
Buffalo, N.Y., July 25 – Royal Bank of Canada priced $1.35 million of phoenix autocallable notes with memory coupon due July 25, 2024 linked to Occidental Petroleum Corp. shares, according to a 424B2 filing with the Securities and Exchange Commission.
If the stock closes at or above the barrier level, 50% of the initial level, on a quarterly observation date, the notes will pay a contingent coupon for that quarter at an annualized rate of 16.2%, plus any previously unpaid contingent interest payments.
The notes will be called at par plus coupon if the shares close at or above the initial share price on any observation date other than the final date.
The payout at maturity will be par plus all unpaid coupons unless the stock finishes below the 50% trigger level, in which case investors will be fully exposed to the decline of the stock.
RBC Capital Markets, LLC is the agent. JPMorgan Chase Bank, NA and J.P. Morgan Securities LLC are acting as placement agents.
| Issuer: | Royal Bank of Canada
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| Issue: | Phoenix autocallable notes with memory coupon
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| Underlying stock: | Occidental Petroleum Corp.
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| Amount: | $1.35 million
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| Maturity: | July 25, 2024
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| Coupon: | 16.2% annualized, paid quarterly, plus any previously unpaid coupons if stock closes at or above barrier level on quarterly observation date
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| Price: | Par
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| Payout at maturity: | Par plus all unpaid coupons if stock finishes at or above trigger level; otherwise, investors will be exposed to the decline of the stock from initial level
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| Call: | At par plus coupon if stock closes at or above initial level on a quarterly observation date
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| Initial price: | $63.55
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| Barrier/trigger price: | $31.78; 50% of initial price
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| Strike date: | July 20
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| Pricing date: | July 21
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| Settlement date: | July 26
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| Agent: | RBC Capital Markets, LLC,
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| Placement agents: | JPMorgan Chase Bank, NA and J.P. Morgan Securities LLC
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| Fees: | 1.5%
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| Cusip: | 78016FQ49
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