By Toni Weeks
San Luis Obispo, Calif., July 23 – Royal Bank of Canada priced $3.29 million of trigger phoenix autocallable optimization securities due Jan. 25, 2016 linked to the common stock of VMware, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
If VMware stock closes at or above the coupon barrier – 75% of the initial share price – on a quarterly observation date, the issuer will pay a contingent coupon for that quarter at the rate of 13.2%. Otherwise, no coupon will be paid that quarter.
If the shares close at or above the initial price on any quarterly observation date, the notes will be called at par plus the contingent coupon.
If the notes are not called and VMware shares finish at or above the 75% trigger price, the payout at maturity will be par plus the contingent coupon. Otherwise, investors will be exposed to the share price decline from the initial price.
UBS Financial Services Inc. and RBC Capital Markets, LLC are the agents.
| Issuer: | Royal Bank of Canada
|
| Issue: | Trigger phoenix autocallable optimization securities
|
| Underlying stock: | VMware, Inc. (Symbol: VMW)
|
| Amount: | $3,292,400
|
| Maturity: | Jan. 25, 2016
|
| Coupon: | 13.2%, payable quarterly if stock closes at or above coupon barrier on observation date for that quarter
|
| Price: | Par of $10.00
|
| Payout at maturity: | Par plus contingent coupon if VMware shares finish at or above coupon barrier; par if shares finish below coupon barrier but at or above trigger price; otherwise, par plus stock return
|
| Call: | Automatically at par plus contingent coupon if VMware shares close at or above initial price on any quarterly observation date
|
| Initial share price: | $95.31
|
| Coupon barrier/trigger: | $71.48, 75% of initial price
|
| Pricing date: | July 18
|
| Settlement date: | July 23
|
| Agents: | RBC Capital Markets, LLC and UBS Financial Services Inc.
|
| Fees: | 1.5%
|
| Cusip: | 78011Y108
|
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