Published on 4/17/2017 in the Prospect News Structured Products Daily.
New Issue: RBC sells $5.8 million of contingent income autocallables tied to Wynn
By Devika Patel
Knoxville, Tenn., April 17 – Royal Bank of Canada priced $5.8 million of contingent income autocallable securities due April 18, 2018 linked to the common stock of Wynn Resorts, Ltd., according to a 424B2 filing with the Securities and Exchange Commission.
If Wynn shares close at or above the downside threshold level, 70% of the initial share price, on a quarterly determination date, the notes will pay a contingent payment that quarter at an annualized rate of 10.5%.
The notes will be called at par of $10 plus the contingent coupon if Wynn shares close at or above the initial share price on July 13, 2017, Oct. 13, 2017 or Jan. 16, 2018.
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 lose 1% for every 1% that the final share price is less than the initial share price.
RBC Capital Markets, LLC is the agent. Morgan Stanley Wealth Management is a dealer.
| Issuer: | Royal Bank of Canada
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| Issue: | Contingent income autocallable securities
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| Underlying stock: | Wynn Resorts, Ltd. (Symbol: WYNN)
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| Amount: | $5,799,650
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| Maturity: | April 18, 2018
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| Coupon: | 10.5% per year, payable quarterly if Wynn shares close at or above downside threshold level on determination date for that quarter
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| Price: | Par of $10.00
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| Payout at maturity: | If final share price is greater than or equal to downside threshold level, par plus final contingent coupon; otherwise, 1% loss for every 1% that final share price is less than initial share price
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| Call: | At par plus contingent coupon if Wynn shares close at or above initial share price on July 13, 2017, Oct. 13, 2017 or Jan. 16, 2018
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| Initial share price: | $113.47
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| Downside threshold: | $79.43, 70% of initial share price
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| Pricing date: | April 13
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| Settlement date: | April 19
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| Agent: | RBC Capital Markets, LLC
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| Fees: | 1.75%
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| Cusip: | 78014E604
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