By Angela McDaniels
Tacoma, Wash., Aug. 5 – Royal Bank of Canada priced $3.98 million of contingent income autocallable securities due Aug. 8, 2016 linked to the common stock of Valero Energy Corp., according to a 424B2 filing with the Securities and Exchange Commission.
If Valero shares close at or above the downside threshold level, 80% of the initial share price, on a quarterly determination date, the notes will pay a contingent payment that quarter at an annualized rate of 9.45%.
The notes will be called at par of $10 plus the contingent coupon if Valero shares close at or above the initial share price on any quarterly determination date other than the final determination date.
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 receive a number of Valero shares equal to $10 divided by the initial share price or, at the issuer’s option, a cash amount equal to the value of those shares.
RBC Capital Markets, LLC is the agent. Morgan Stanley Smith Barney LLC is handling distribution.
| Issuer: | Royal Bank of Canada
|
| Issue: | Contingent income autocallable securities
|
| Underlying stock: | Valero Energy Corp. (Symbol: VLO)
|
| Amount: | $3,983,440
|
| Maturity: | Aug. 8, 2016
|
| Coupon: | 9.45% per year, payable quarterly if Valero shares close at or above downside threshold level on determination date for that quarter
|
| Price: | Par of $10.00
|
| Payout at maturity: | If final share price is greater than or equal to downside threshold level, par plus final contingent coupon; otherwise, 0.1524 Valero shares or, at issuer’s option, equivalent amount in cash
|
| Call: | At par plus contingent coupon if Valero shares close at or above initial share price on any quarterly determination date other than final determination date
|
| Initial share price: | $65.60
|
| Downside threshold: | $52.48, 80% of initial share price
|
| Pricing date: | July 31
|
| Settlement date: | Aug. 5
|
| Agent: | RBC Capital Markets, LLC
|
| Distribution: | Morgan Stanley Smith Barney LLC
|
| Fees: | 1.75%
|
| Cusip: | 78013D466
|
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