By Sarah Lizee
Olympia, Wash., Feb. 13 – Royal Bank of Canada priced $5.18 million of contingent income autocallable securities due Feb. 4, 2021 linked to Twitter, Inc. shares, according to a 424B2 filing with the Securities and Exchange Commission.
If Twitter shares close at or above the barrier level, 60% of the initial share price, on a quarterly determination date, the notes will pay a contingent payment based on an 8% annualized rate.
The notes will be called at par of $10 plus the contingent coupon if Twitter shares close at or above the initial share price on any of the first three quarterly determination dates.
If the stock finishes at or above the 60% downside threshold level, the payout at maturity will be par plus the final contingent coupon.
Otherwise, investors will be fully exposed to the losses of the final share price.
RBC Capital Markets, LLC is the agent with Morgan Stanley Wealth Management as distributor.
| Issuer: | Royal Bank of Canada
|
| Issue: | Contingent income autocallable securities
|
| Underlying stock: | Twitter, Inc.
|
| Amount: | $5,181,350
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| Maturity: | Feb. 4, 2021
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| Contingent coupon: | 8% annual rate, payable each quarter that Twitter stock closes at or above coupon threshold level on determination date for that quarter
|
| Price: | Par
|
| Payout at maturity: | If stock finishes at or above barrier level, par plus contingent payment; otherwise full exposure to losses
|
| Call: | At par plus contingent payment if stock closes at or above initial level on any of first three quarterly determination dates
|
| Initial share price: | $32.48
|
| Coupon threshold: | $19.49, 60% of initial share price
|
| Downside threshold: | $19.49, 60% of initial share price
|
| Pricing date: | Jan. 31
|
| Settlement date: | Feb. 5
|
| Agent: | RBC Capital Markets, LLC with Morgan Stanley Wealth Management
|
| Fees: | 1.75%
|
| Cusip: | 78014K402
|
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