By Jennifer Chiou
New York, Jan. 13 – Royal Bank of Canada priced $1.19 million of trigger phoenix autocallable notes due Jan. 20, 2017 linked to the worst performing of the common units of the Blackstone Group LP and the common stocks of Bank of America Corp. and Citigroup Inc., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annual rate of 11.2% if each stock closes at or above its barrier level, 70% of its initial price, on an observation date for that quarter.
The notes will be called at par plus the contingent coupon if each stock closes at or above its initial price on any quarterly observation date.
The payout at maturity will be par plus the contingent coupon unless any stock finishes below its barrier level, in which case investors will be fully exposed to any losses of the worst-performing stock.
RBC Capital Markets, LLC is the underwriter.
| Issuer: | Royal Bank of Canada
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| Issue: | Trigger phoenix autocallable notes
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| Underlying units/stocks: | Blackstone Group LP (Symbol: BX), Bank of America Corp. (Symbol: BAC) and Citigroup Inc. (Symbol: C)
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| Amount: | $1.19 million
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| Maturity: | Jan. 20, 2017
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| Coupon: | 11.2% annualized for each quarter that each stock closes at or above barrier level on observation date for that quarter
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| Price: | Par
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| Payout at maturity: | If each stock finishes at or above barrier level, par plus contingent coupon; otherwise, full exposure to losses of worst-performing stock
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| Call: | At par plus contingent coupon if each stock closes at or above its initial price on any quarterly observation date
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| Initial prices: | $34.35 for Blackstone, $16.68 for Bank of America, $50.38 for Citigroup
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| Barrier prices: | 70% of initial levels
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| Pricing date: | Jan. 12
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| Settlement date: | Jan. 20
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| Underwriter: | RBC Capital Markets, LLC
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| Fees: | 2.25%
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| Cusip: | 78012KAP2
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