By Toni Weeks
San Luis Obispo, Calif., April 23 - Royal Bank of Canada priced $8.39 million of trigger phoenix autocallable optimization securities due Oct. 24, 2014 linked to Occidental Petroleum Corp. shares, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a quarterly contingent coupon at an annualized rate of 10.13% if Occidental Petroleum shares close at or above the trigger price - 75% of the initial share price - on a quarterly observation date.
The notes will be automatically called at par of $10 plus the contingent coupon if the shares close at or above the initial price on any observation date.
If the notes are not called and Occidental Petroleum shares finish at or above the trigger price, the payout at maturity will be par plus the contingent coupon.
Otherwise, investors will be fully exposed to losses.
UBS Financial Services Inc. and RBC Capital Markets, LLC are the underwriters.
Issuer: | Royal Bank of Canada
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Issue: | Trigger phoenix autocallable optimization securities
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Underlying stock: | Occidental Petroleum Corp. (Symbol: OXY)
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Amount: | $8,385,430
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Maturity: | Oct. 24, 2014
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Coupon: | 10.13% per year if shares close at or above trigger price on observation date for that quarter
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Price: | Par of $10
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Payout at maturity: | Par plus contingent coupon if Occidental Petroleum shares finish at or above trigger price; otherwise, par plus stock return
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Call: | At par plus contingent coupon if Occidental Petroleum shares close at or above initial price on any quarterly observation date
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Initial share price: | $79.61
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Trigger price: | $59.71, 75% of initial share price
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Pricing date: | April 19
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Settlement date: | April 25
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Underwriters: | UBS Financial Services Inc. and RBC Capital Markets, LLC
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Fees: | 1.5%
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Cusip: | 78008D497
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