Published on 6/6/2014 in the Prospect News Structured Products Daily.
New Issue: RBC prices $6.3 million 10.1% callable reverse convertibles tied to BofA, Citi, JPMorgan
By Jennifer Chiou
New York, June 6 – Royal Bank of Canada priced $6.3 million of 10.1% callable reverse convertible notes due June 12, 2015 linked to the worst performing of three equity securities, Bank of America Corp., Citigroup Inc. and JPMorgan Chase & Co., according to a 424B2 filing with the Securities and Exchange Commission.
Interest is payable at maturity.
The notes may be called at the issuer’s option beginning on Oct. 6, 2014 at par plus accrued interest.
If the notes are not called, the payout at maturity will be par in cash unless the price of any stock is below its barrier price, 75% of its initial price, during the life of the notes and the price of the worst-performing stock finishes below its initial level, in which case the payout will be a number of shares of the worst-performing stock equal to $1,000 principal amount divided by the initial price.
RBC Capital Markets, LLC is the agent.
| Issuer: | Royal Bank of Canada
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| Issue: | Callable reverse convertible notes
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| Underlying stocks: | Bank of America Corp. (Symbol: BAC), Citigroup Inc. (Symbol: C) and JPMorgan Chase & Co. (Symbol: JPM)
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| Amount: | $6.3 million
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| Maturity: | June 12, 2015
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| Coupon: | 10.1%, payable at maturity
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| Price: | Par
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| Payout at maturity: | Par in cash unless the price of any stock is below its barrier price during the life of the notes and the price of the worst-performing stock finishes below its initial level, in which case a number of shares of the worst-performing stock equal to $1,000 divided by the initial price
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| Call: | At issuer’s option beginning on Oct. 6, 2014 at par plus accrued interest
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| Initial prices: | $15.21 for BofA, $47.88 for Citi, $55.68 for JPMorgan
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| Barrier prices: | $11.41 for BofA, $35.91 for Citi, $41.76 for JPMorgan, 75% of initial prices
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| Pricing date: | June 4
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| Settlement date: | June 12
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| Agent: | RBC Capital Markets, LLC
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| Fees: | None
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| Cusip: | 78010UXS1
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