Published on 6/21/2013 in the Prospect News Structured Products Daily.
New Issue: RBC prices $3 million 8.75% autocallable reverse convertibles linked to Boeing, Occidental
By Angela McDaniels
Tacoma, Wash., June 21 - Royal Bank of Canada priced $3 million of 8.75% autocallable reverse convertible notes due June 25, 2014 linked to the common stocks of Boeing Co. and Occidental Petroleum Corp., according to a 424B2 filing with the Securities and Exchange Commission.
Interest is payable monthly.
The notes will be automatically called at par if each of the underlying stocks closes at or above its initial price on a quarterly call date.
If the notes are not automatically called, the payout at maturity will be par unless either stock's final share price is less than 65% of its initial price, in which case the payout will be a number of shares of the worst-performing stock equal to $1,000 divided by that stock's initial share price or, at the issuer's option, the cash value of those shares.
RBC Capital Markets, LLC is the agent.
| Issuer: | Royal Bank of Canada
|
| Issue: | Autocallable reverse convertible notes
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| Underlying stocks: | Boeing Co. (Symbol: BA), Occidental Petroleum Corp. (Symbol: OXY)
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| Amount: | $3 million
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| Maturity: | June 25, 2014
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| Coupon: | 8.75%, payable monthly
|
| Price: | Par
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| Payout at maturity: | Par unless either stock's final share price is less than its barrier price, in which case a number of shares of the worst-performing stock equal to $1,000 divided by that stock's initial share price or, at the issuer's option, the cash value of those shares
|
| Call: | Automatically called at par if both stocks close at or above their initial prices on Sept. 20, 2013, Dec. 20, 2013, March 20, 2014 or June 20, 2014
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| Initial prices: | $100.30 for Boeing and $89.87 for Occidental
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| Barrier prices: | $65.20 for Boeing and $58.42 for Occidental; 65% of initial prices
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| Pricing date: | June 20
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| Settlement date: | June 25
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| Agent: | RBC Capital Markets, LLC
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| Fees: | 0.5%
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| Cusip: | 78008S4J2
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