By Wendy Van Sickle
Columbus, Ohio, Dec. 15 – Royal Bank of Canada priced $1.68 million of contingent income autocallable securities due June 16, 2016 linked to the common stock of Tenet Healthcare Corp., according to a 424B2 filed with the Securities and Exchange Commission.
If Tenet shares close at or above the downside threshold level, 75% of the initial share price, on a monthly determination date, the notes will pay a contingent payment that month at an annualized rate of 15.6%.
The notes will be called at par of $10 plus the contingent coupon if Tenet shares close at or above the initial share price on any of the first five determination dates.
If the final share price is greater than or equal to the downside threshold level, the payout at maturity will be par plus the final contingent coupon. Otherwise, investors will lose 1% for every 1% that the final share price is less than the initial share price.
RBC Capital Markets, LLC is the agent. Morgan Stanley Wealth Management is handling distribution.
Issuer: | Royal Bank of Canada
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Issue: | Contingent income autocallable securities
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Underlying stock: | Tenet Healthcare Corp. (Symbol: THC)
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Amount: | $1,678,700
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Maturity: | June 16, 2016
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Coupon: | 15.6% per year, payable monthly if shares close at or above downside threshold level on determination date for that month
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Price: | Par of $10
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Payout at maturity: | Par plus contingent coupon if shares finish at or above downside threshold level; otherwise, 1% loss for every 1% that final share price is less than the initial price
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Call: | At par plus contingent payment if shares close at or above initial price on any of first five determination dates
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Initial price: | $30.00
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Downside threshold: | $22.50, 75% of initial price
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Pricing date: | Dec. 11
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Settlement date: | Dec. 16
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Agent: | RBC Capital Markets, LLC
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Distribution: | Morgan Stanley Wealth Management
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Fees: | 1.25%
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Cusip: | 78013C344
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