By Susanna Moon
Chicago, Feb. 7 – Royal Bank of Canada priced $2.29 million of autocallable contingent coupon barrier notes due Feb. 3, 2021 linked to the stocks of Alibaba Group Holding Ltd. and Costco Wholesale Corp., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annual rate of 10% if each stock closes at or above the 65% coupon barrier level on the observation date for that quarter.
The notes will be called at par plus the coupon if each stock closes at or above its initial price on any quarterly observation date after six months.
The payout at maturity will be par plus the coupon unless either stock finishes below the 65% trigger level, in which case investors will be fully exposed to any losses of the worse 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: | Alibaba Group Holding Ltd. (Symbol: BABA) and Costco Wholesale Corp. (Symbol: COST)
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| Amount: | $2.29 million
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| Maturity: | Feb. 3, 2021
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| Coupon: | 10%, payable quarterly if each stock closes at or above 65% coupon barrier level on observation date for that quarter
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| Price: | Par
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| Payout at maturity: | Par plus the coupon unless either stock finishes below 65% trigger level, in which case 1% loss for each 1% decline of worse performing stock
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| Call: | At par plus coupon if each stock closes at or above initial price on any quarterly observation date beginning July 30, 2018
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| Initial levels: | $203.01 for Alibaba and $198.32 for Costco
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| Trigger levels: | $131.96 for Alibaba and $128.91 for Costco, 65% of initial levels
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| Pricing date: | Jan. 29
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| Settlement date: | Jan. 31
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| Agents: | RBC Capital Markets, LLC
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| Fees: | 2.25%
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| Cusip: | 78013XER5
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