Published on 10/28/2016 in the Prospect News Structured Products Daily.
New Issue: RBC prices $2 million contingent coupon autocallables on Disney, Nike, Starbucks
By Angela McDaniels
Tacoma, Wash., Oct. 28 – Royal Bank of Canada priced $2 million of autocallable contingent coupon barrier notes due Oct. 31, 2019 linked to the least performing of the common stocks of Nike, Inc., Starbucks Corp. and Walt Disney Co., according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes pay a contingent coupon at an annual rate of 10% if each stock closes at or above its buffer price, 80% of its initial price, on the observation date for that quarter.
Beginning on April 26, 2017, the notes will be called at par if each stock closes at or above its initial share price on any quarterly observation date.
The payout at maturity will be par unless the least-performing stock finishes below its buffer price, in which case investors will lose 1% for every 1% that the least-performing stock declines beyond 20%.
RBC Capital Markets, LLC is the underwriter.
| Issuer: | Royal Bank of Canada
|
| Issue: | Autocallable contingent coupon barrier notes
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| Underlying stocks: | Nike, Inc. (Symbol: NKE), Starbucks Corp. (Symbol: SBUX) and Walt Disney Co. (Symbol: DIS)
|
| Amount: | $2 million
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| Maturity: | Oct. 31, 2019
|
| Coupon: | 10%, payable quarterly if each stock closes at or above buffer price on observation date for that quarter
|
| Price: | Par
|
| Payout at maturity: | Par unless least-performing stock finishes below buffer price, in which case 1% loss for every 1% that least-performing stock declines beyond 20%
|
| Initial share prices: | $93.49 for Disney, $51.97 for Nike and $53.63 for Starbucks
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| Buffer prices: | $74.79 for Disney, $41.58 for Nike and $42.90 for Starbucks; 80% of initial share prices
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| Pricing date: | Oct. 26
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| Settlement date: | Oct. 31
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| Underwriter: | RBC Capital Markets, LLC
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| Fees: | 2.75%
|
| Cusip: | 78012KUV7
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