By Marisa Wong
Madison, Wis., Feb. 9 – Royal Bank of Canada priced $3.64 million of contingent income autocallable securities due Feb. 11, 2016 linked to salesforce.com, inc. shares, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annual rate of 11.3% if salesforce.com stock closes at or above the 75% downside threshold level on a determination date for that quarter.
The notes will be redeemed at par of $10 plus the contingent payment if the stock closes at or above the initial level on any of the first three quarterly determination dates.
If the notes are not called, the payout at maturity will be par plus the contingent payment unless the stock finishes below its 75% downside threshold level, in which case the payout will be a number of salesforce.com shares equal to $10 divided by the initial share price or, at the issuer’s option, the cash equivalent.
RBC Capital Markets, LLC is the agent. Morgan Stanley Wealth Management is the dealer.
| Issuer: | Royal Bank of Canada
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| Issue: | Contingent income autocallable securities
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| Underlying stock: | salesforce.com, inc. (Symbol: CRM)
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| Amount: | $3,643,600
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| Maturity: | Feb. 11, 2016
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| Coupon: | 11.3% per year, payable quarterly if salesforce.com shares close at or downside threshold level on determination date for that quarter
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| Price: | Par of $10.00
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| Payout at maturity: | If stock finishes at or above downside threshold level, par plus final contingent coupon; otherwise, 0.169 salesforce.com shares
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| Call: | At par plus contingent coupon if salesforce.com shares close at or above initial share price on any of the first three determination dates
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| Initial share price: | $59.17
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| Downside threshold level: $44.38, 75% of initial share price
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| Pricing date: | Feb. 6
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| Settlement date: | Feb. 11
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| Agent: | RBC Capital Markets, LLC
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| Distribution: | Morgan Stanley Wealth Management
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| Fees: | 1.75%
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| Cusip: | 780082368
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