By Wendy Van Sickle
Columbus, Ohio, Dec. 2 – Royal Bank of Canada priced $3.67 million issuer callable contingent coupon barrier notes due Nov. 25, 2022 tied to the American Depositary Shares of Alibaba Group Holding Ltd., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a quarterly contingent coupon at an annual rate of 14.25% if the stock closes above its 70% coupon barrier on any observation date for that quarter.
After six months, the notes may be called at par plus any coupon due at the option of the issuer on any quarterly coupon payment date.
Investors will receive par plus the contingent coupon if the final level of the stock is above its 70% trigger level.
Otherwise, investors will be fully exposed to the losses of the stock, payable either in shares or cash.
RBC Capital Markets, LLC is the underwriter.
| Issuer: | Royal Bank of Canada
|
| Issue: | Issuer callable contingent coupon barrier notes
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| Underlying stock: | Alibaba Group Holding Ltd.
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| Amount: | $3,673,000
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| Maturity: | Nov. 25, 2022
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| Coupon: | 14.25% per year, paid quarterly if stock closes above coupon barrier related observation date for that quarter
|
| Price: | Par
|
| Payout at maturity: | Par plus contingent coupon unless stock closes below trigger level, in which case full exposure to losses of stock
|
| Call option: | After six months, at par plus any coupon due at the option of the issuer on any quarterly coupon payment date
|
| Initial price: | $270.74
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| Coupon barrier level: | $189.52, 70% of initial levels
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| Trigger level: | $189.52, 70% of initial levels
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| Pricing date: | Nov. 20
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| Settlement date: | Nov. 25
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| Agent: | RBC Capital Markets, LLC
|
| Fees: | 1.75%
|
| Cusip: | 78016EPK7
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