By Cady Vishniac
Detroit, Dec. 14 – Royal Bank of Canada priced $3.61 million issuer callable contingent coupon barrier notes due Dec. 13, 2022 tied to the shares of salesforce.com, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a quarterly contingent coupon at an annual rate of 11.25% if the stock closes at or above its 70% coupon barrier price on the observation date for that quarter.
The notes may be called at par plus any coupon due at the option of the issuer on any quarterly coupon payment date.
Investors will receive par plus the contingent coupon if the final stock price is above its 70% trigger price.
Otherwise, investors will be fully exposed to the losses of the stock, payable in either shares or cash.
RBC Capital Markets, LLC is the underwriter.
| Issuer: | Royal Bank of Canada
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| Issue: | Issuer callable contingent coupon barrier notes
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| Underlying stock: | salesforce.com, Inc.
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| Amount: | $3,611,000
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| Maturity: | Dec. 13, 2022
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| Coupon: | 11.25% per year, paid quarterly if stock closes at or above coupon barrier on related observation date for that quarter
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| Price: | Par
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| Payout at maturity: | Par plus contingent coupon unless stock finishes below trigger level, in which case full exposure to losses of stock
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| Call option: | At par plus any coupon due at the option of the issuer on any quarterly coupon payment date
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| Initial price: | $227.86
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| Coupon barrier price: | $159.50, 70% of initial price
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| Trigger price: | $159.50, 70% of initial price
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| Pricing date: | Dec. 8
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| Settlement date: | Dec. 11
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| Agent: | RBC Capital Markets, LLC
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| Fees: | 1%
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| Cusip: | 78013GZF5
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