By Toni Weeks
San Luis Obispo, Calif., June 10 – Royal Bank of Canada priced $1.94 million of phoenix autocallable notes due June 24, 2015 linked to Oshkosh Corp. shares, according to a 424B2 filing with the Securities and Exchange Commission.
If Oshkosh stock closes at or above the 80% barrier level on a quarterly observation date, the notes will pay a contingent coupon at an annualized rate of 11.6% for that quarter.
If the shares close at or above the initial price on any quarterly observation date other than the final date, the notes will be called at par plus the contingent coupon.
If the notes are not called and Oshkosh shares finish at or above the 80% trigger price, the payout at maturity will be par plus the contingent coupon.
Otherwise, investors will be fully exposed to losses.
The final price will be the average of the closing share prices on five trading days ending June 19, 2015.
RBC Capital Markets, LLC is the underwriter. J.P Morgan Securities LLC and JPMorgan Chase Bank, NA are the agents.
| Issuer: | Royal Bank of Canada
|
| Issue: | Phoenix autocallable notes
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| Underlying stock: | Oshkosh Corp. (Symbol: OSK)
|
| Amount: | $1,935,000
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| Maturity: | June 24, 2015
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| Coupon: | 11.6% per year, payable quarterly if stock closes at or above barrier level on observation date for that quarter
|
| Price: | Par
|
| Payout at maturity: | Par plus contingent coupon if Oshkosh shares finish at or above trigger price; otherwise, par plus stock return
|
| Call: | At par plus contingent coupon if Oshkosh shares close at or above initial price on any quarterly observation date other than final date
|
| Initial share price: | $55.84
|
| Barrier/trigger price: | $44.67, 80% of initial share price
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| Pricing date: | June 6
|
| Settlement date: | June 11
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| Underwriter: | RBC Capital Markets, LLC
|
| Agents: | J.P Morgan Securities LLC and JPMorgan Chase Bank, NA
|
| Fees: | 1%
|
| Cusip: | 78010UA49
|
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