By Jennifer Chiou
New York, May 21 - Royal Bank of Canada priced $2.3 million of phoenix autocallable notes due May 13, 2015 linked to the common stock of Bank of America Corp., according to a 424B2 filing with the Securities and Exchange Commission.
If Bank of America stock closes at or above the trigger price - 85% of the initial share price - on a quarterly observation date, the issuer will pay a contingent coupon for that quarter at the rate of 10.1%. 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 Bank of America shares finish at or above the 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.
RBC Capital Markets, LLC is the underwriters with J.P. Morgan Securities LLC as placement agent.
| Issuer: | Royal Bank of Canada
|
| Issue: | Phoenix autocallable notes
|
| Underlying stock: | Bank of America Corp. (NYSE: BAC)
|
| Amount: | $2.3 million
|
| Maturity: | May 13, 2015
|
| Coupon: | 10.1% per year if shares close at or above trigger price on observation date for that quarter
|
| Price: | Par
|
| Payout at maturity: | Par plus contingent coupon if Bank of America shares finish at or above trigger price; otherwise, par plus stock return
|
| Call: | At par plus contingent coupon if Bank of America shares close at or above initial price on any quarterly observation date
|
| Initial share price: | $14.51
|
| Trigger price: | $12.33, 85% of initial share price
|
| Pricing date: | May 16
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| Settlement date: | May 21
|
| Underwriter: | RBC Capital Markets, LLC with J.P. Morgan Securities LLC as placement agent
|
| Fees: | 1%
|
| Cusip: | 78010UYU5
|
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