By Marisa Wong
Morgantown, W.Va., May 11 – Royal Bank of Canada priced $1.25 million of trigger phoenix autocallable notes due Nov. 10, 2016 linked to the worse performing of two stocks, Apple Inc. and Time Warner Inc., according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes will pay a contingent coupon of 10.6% per year if each stock closes at or above its coupon barrier level, 80% of its initial price, on the observation date for that quarter.
The notes will be called at par if each stock closes at or above its initial price on any quarterly observation date.
If the notes are not called and each stock finishes at or above its 80% trigger level, the payout at maturity will be par plus the final contingent coupon. Otherwise, investors will receive a number of shares of the worse performing stock equal to $1,000 divided by the initial share price or, at the issuer’s option, the cash value of those shares.
RBC Capital Markets, LLC is the agent.
| Issuer: | Royal Bank of Canada
|
| Issue: | Trigger phoenix autocallable notes
|
| Underlying stocks: | Apple Inc. (Symbol: AAPL), Time Warner Inc. (Symbol: TWX)
|
| Amount: | $1.25 million
|
| Maturity: | Nov. 10, 2016
|
| Coupon: | 10.6% per year, payable quarterly if each stock closes at or above coupon barrier on observation date for that quarter
|
| Price: | Par
|
| Payout at maturity: | If each stock finishes at or above its trigger level, par plus the final contingent coupon; otherwise, a number of shares of the worse performing stock equal to $1,000 divided by the initial share price or, at the issuer’s option, the cash value of those shares
|
| Call: | Automatically at par if each stock closes at or above initial price on any quarterly observation date
|
| Initial prices: | $92.72 for Apple, $74.89 for Time Warner
|
| Trigger/coupon barrier: | $74.18 for Apple and $59.91 for Time Warner; 80% of initial prices
|
| Pricing date: | May 6
|
| Settlement date: | May 11
|
| Agent: | RBC Capital Markets LLC
|
| Fees: | 1.75%
|
| Cusip: | 78013GAY1
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
