By Wendy Van Sickle
Columbus, Ohio, Feb. 5 – Royal Bank of Canada priced $2.48 million of trigger autocallable contingent yield notes due Jan. 29, 2025 linked to the common stock of Schlumberger NV, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at the rate of 12% per year if the stock closes at or above its coupon barrier, 70% of its initial share price, on the related observation date.
The notes will be automatically called at par plus the coupon if the stock closes at or above its initial share price on any quarterly call observation date.
If the notes are not called and the final share price is greater than or equal to the downside threshold level, 70% of the initial share price, the payout at maturity will be par plus the final coupon.
Otherwise, investors will lose 1% for every 1% that the final share price declines from its initial share price.
UBS Financial Services LLC and RBC Capital Markets, LLC are the agents.
Issuer: | Royal Bank of Canada
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Issue: | Trigger autocallable contingent yield notes
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Underlying stock: | Schlumberger NV
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Amount: | $2,484,500
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Maturity: | Jan. 29, 2025
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Coupon: | 12% per year, paid quarterly if the stock closes at or above its coupon barrier on the related observation date
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Price: | Par of $10
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Payout at maturity: | Par plus the final coupon unless stock finishes below downside threshold level, in which case 1% loss for each 1% decline from initial level
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Call: | Automatically at par plus the coupon if the stock closes at or above the initial share price on any quarterly call observation date
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Initial level: | $50.42
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Coupon barrier level: | $35.29; 70% of initial level
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Downside threshold: | $35.29; 70% of initial level
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Pricing date: | Jan. 24
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Settlement date: | Jan. 29
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Agents: | UBS Financial Services LLC and RBC Capital Markets, LLC
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Fees: | 1.5%
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Cusip: | 78016R405
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