Published on 8/23/2017 in the Prospect News Structured Products Daily.
New Issue: RBC prices $2 million contingent barrier enhanced notes linked to Amazon, Alibaba
By Angela McDaniels
Tacoma, Wash., Aug. 23 – Royal Bank of Canada priced $2 million of 0% contingent barrier enhanced notes due Sept. 7, 2018 linked to the lesser performing of the common stock of Amazon.com Inc. and the American Depositary Shares of Alibaba Group Holding Ltd., according to a 424B2 filing with the Securities and Exchange Commission.
If the return of the lesser-performing stock is negative 30% or greater, the payout at maturity will be par plus 10%.
If the return of the lesser-performing stock is less than negative 30%, the payout will be a number of shares of the lesser-performing stock equal to $1,000 divided by that stock’s initial share price or, at the issuer’s option, an amount in cash equal to the value of those shares.
RBC Capital Markets, LLC is the underwriter. JPMorgan Chase Bank, NA and J.P. Morgan Securities LLC are the placement agents.
| Issuer: | Royal Bank of Canada
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| Issue: | Contingent barrier enhanced notes
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| Underlying stocks: | Amazon.com Inc. (Symbol: AMZN) and Alibaba Group Holding Ltd. (Symbol: BABA)
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| Amount: | $2 million
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| Maturity: | Sept. 7, 2018
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| Coupon: | 0%
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| Price: | Par
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| Payout at maturity: | If return of lesser-performing stock is negative 30% or greater, par plus 10%; otherwise, number of shares of lesser-performing stock equal to $1,000 divided by that stock’s initial share price or, at issuer’s option, amount in cash equal to value of those shares
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| Initial share prices: | $953.29 for Amazon and $169.25 for Alibaba
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| Final share prices: | For each stock, average of closing prices on five trading days ending Sept. 4
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| Barrier levels: | $667.30 for Amazon and $118.48 for Alibaba, or 70% of initial share prices
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| Pricing date: | Aug. 21
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| Settlement date: | Aug. 24
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| Underwriter: | RBC Capital Markets, LLC
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| Agents: | JPMorgan Chase Bank, NA and J.P. Morgan Securities LLC
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| Fees: | 1%
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| Cusip: | 78013GES0
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