Published on 9/24/2013 in the Prospect News Structured Products Daily.
New Issue: RBC sells $3 million 12.8% autocallable reverse convertibles on Peabody, Occidental
By Marisa Wong
Madison, Wis., Sept. 24 - Royal Bank of Canada priced $3 million of 12.8% autocallable reverse convertible notes due Sept. 26, 2014 linked to the common stocks of Peabody Energy Corp. and Occidental Petroleum Corp., according to a 424B2 filing with the Securities and Exchange Commission.
Interest is payable quarterly.
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 the final share price of either stock is less than 60% of its initial price, in which case the payout will be a number of shares of the worse performing stock equal to $1,000 divided by the initial price of that stock or, at the issuer's election, 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: | Peabody Energy Corp. (Symbol: BTU), Occidental Petroleum Corp. (Symbol: OXY)
|
| Amount: | $3 million
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| Maturity: | Sept. 26, 2014
|
| Coupon: | 12.8%, payable quarterly
|
| Price: | Par
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| Payout at maturity: | Par unless final share price of either stock is less than barrier price, in which case a number of shares of worse performing stock equal to $1,000 divided by initial price of that stock or, at issuer's option, cash equivalent
|
| Call: | Automatically called at par if all stocks close at or above their initial prices on a quarterly call date
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| Initial prices: | $18.26 for Peabody, $91.32 for Occidental
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| Barrier prices: | $10.96 for Peabody, $54.79 for Occidental; 60% of initial prices
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| Pricing date: | Sept. 23
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| Settlement date: | Sept. 26
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| Agent: | RBC Capital Markets, LLC
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| Fees: | 0.5%
|
| Cusip: | 78010UFC6
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