Published on 9/18/2014 in the Prospect News Structured Products Daily.
New Issue: RBC prices $3 million 8.9% autocallable reverse convertibles linked to two stocks
By Marisa Wong
Madison, Wis., Sept. 18 – Royal Bank of Canada priced $3 million of 8.9% autocallable reverse convertible notes due Dec. 21, 2015 linked to the worst performing of Caterpillar Inc. stock and Valero Energy Corp. stock, according to a 424B2 filing with the Securities and Exchange Commission.
Interest is payable monthly.
The notes will be called at par plus accrued interest if each stock closes at or above its initial price on any monthly call date.
If the notes are not called, the payout at maturity will be par in cash unless the price of any stock falls below its barrier price, 65% of its initial price, on the final valuation date, in which case the payout will be a number of shares of the worst-performing stock equal to $1,000 divided by the initial price.
RBC Capital Markets, LLC is the agent.
| Issuer: | Royal Bank of Canada
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| Issue: | Autocallable reverse convertible notes
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| Underlying stocks: | Caterpillar Inc. (Symbol: CAT), Valero Energy Corp. (Symbol: VLO)
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| Amount: | $3 million
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| Maturity: | Dec. 21, 2015
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| Coupon: | 8.9%, payable monthly
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| Price: | Par
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| Payout at maturity: | Par in cash unless any stock finishes below barrier price on final valuation date, in which case number of shares of the worst-performing stock equal to $1,000 divided by the initial price
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| Call: | At par plus accrued interest on any monthly call date if each stock closes at or above initial price
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| Initial prices: | $104.86 for Caterpillar, $48.70 for Valero
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| Barrier prices: | $68.16 for Caterpillar, $31.66 for Valero, 65% of initial price
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| Pricing date: | Sept. 16
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| Settlement date: | Sept. 19
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| Agent: | RBC Capital Markets, LLC
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| Fees: | 0.5%
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| Cusip: | 78010U2J5
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