By Jennifer Chiou
New York, Oct. 31 - Royal Bank of Canada priced $811,000 of contingent coupon callable yield notes due Oct. 30, 2015 linked to Toll Brothers, 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 13.35% if Toll Brothers shares close at or above the 70% barrier level on the valuation date for that quarter.
The notes are callable at par plus the contingent coupon on any interest payment date.
If the notes are not called and Toll Brothers stock finishes at or above the barrier price, the payout at maturity will be par.
Otherwise, investors will receive a number of shares equal to $1,000 divided by the initial share price or the cash value of those shares.
RBC Capital Markets, LLC is the underwriter. Barclays is the agent.
| Issuer: | Royal Bank of Canada
|
| Issue: | Contingent coupon callable yield notes
|
| Underlying stock: | Toll Brothers Global Holdings, Inc. (Symbol: TOL)
|
| Amount: | $811,000
|
| Maturity: | Oct. 30, 2015
|
| Coupon: | 13.35% per year, payable quarterly if Toll Brothers shares close at or above barrier price on valuation date for that quarter
|
| Price: | Par
|
| Payout at maturity: | Par if stock finishes at or above barrier price; otherwise, full exposure to losses
|
| Call option: | At par plus contingent coupon on any interest payment date
|
| Initial share price: | $33.58
|
| Barrier price: | $23.51, 70% of initial share price
|
| Pricing date: | Oct. 28
|
| Settlement date: | Oct. 31
|
| Underwriter: | RBC Capital Markets, LLC with Barclays
|
| Fees: | 1.5%
|
| Cusip: | 78010UHK6
|
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