By Taylor Fox
New York, Dec. 30 – Royal Bank of Canada priced $2.24 million of phoenix autocallable notes with memory coupon due Jan. 5, 2022 linked to the American Depository Shares of Alibaba Group Holding Ltd., according to a 424B2 filing with the Securities and Exchange Commission.
If the stock closes at or above the barrier price, 70% of the initial price, on a quarterly observation date, the notes will pay a contingent coupon for that quarter at an annualized rate of 11%, plus any previously unpaid contingent interest payments.
The notes will be called at par if the shares close at or above the initial share price on any quarterly observation date other than the final date.
The payout at maturity will be par plus the final coupon and any previously unpaid coupons, unless the stock finishes below the 70% trigger price.
Otherwise, investors will be fully exposed to the losses of the stock.
RBC Capital Markets, LLC is the agent.
JPMorgan Chase Bank, NA and J.P. Morgan Securities LLC are the placement agents.
| Issuer: | Royal Bank of Canada
|
| Issue: | Phoenix autocallable notes with memory coupon
|
| Underlying stock: | Alibaba Group Holding Ltd.
|
| Amount: | $2,235,000
|
| Maturity: | Jan. 5, 2022
|
| Coupon: | 11% annualized, plus any previously unpaid coupons, if stock closes at or above barrier price on quarterly observation date
|
| Price: | Par
|
| Payout at maturity: | Par plus contingent coupon and previously unpaid coupons if stock finishes at or above trigger price; otherwise, 1% loss for each 1% stock decline
|
| Call: | At par plus contingent coupon and previously unpaid coupons if stock closes at or above initial price on a quarterly observation date
|
| Initial price: | $260
|
| Coupon barrier/trigger price: | $182, 70% of initial price
|
| Pricing date: | Dec. 18
|
| Settlement date: | Dec. 23
|
| Agent: | RBC Capital Markets, LLC
|
| Placement agents: | JPMorgan Chase Bank, NA and J.P. Morgan Securities LLC
|
| Fees: | 1%
|
| Cusip: | 78016EXP7
|
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