Published on 10/11/2017 in the Prospect News Structured Products Daily.
New Issue: RBC sells $675,000 12.95% contingent barrier autocallables tied to three stocks
By Susanna Moon
Chicago, Oct. 11 – Royal Bank of Canada priced $675,000 of autocallable contingent coupon barrier notes due April 2, 2018 linked to the lesser performing of the common stocks of Amazon.com, Inc. and Alphabet Inc. and Alibaba Group Holding Ltd., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annual rate of 12.95% if each stock closes at or above its 80% coupon barrier on the observation date for that quarter.
The notes will be called at par if each stock closes its initial level on any quarterly observation date after six months.
The payout at maturity will be par unless any stock finishes below its 80% trigger 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: | Autocallable contingent coupon barrier notes
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| Underlying stocks: | Amazon.com, Inc. (Symbol: AMZN), Alibaba Group Holding Ltd. (Symbol: BABA) and Alphabet Inc. (Symbol: GOOGL)
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| Amount: | $675,000
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| Maturity: | April 2, 2018
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| Coupon: | 12.95%, payable quarterly if each stock closes at or above 80% coupon barrier on observation date for that quarter
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| Price: | Par
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| Payout at maturity: | Par unless any stock finishes below trigger level, in which case shares of the worst performing stock equal to $1,000 divided by the initial share price
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| Call: | At par if each stock closes above initial level on any quarterly observation date beginning March 28, 2018
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| Initial levels: | $950.87 for Amazon, $170.99 for Alibaba and $959.90 for Alphabet
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| Trigger levels: | $760.70 for Amazon, $136.79 for Alibaba and $767.92 for Alphabet, 80% of initial levels
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| Pricing date: | Sept. 27
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| Settlement date: | Sept. 29
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| Agent: | RBC Capital Markets, LLC
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| Fees: | 2%
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| Cusip: | 78013GEX9
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