By Marisa Wong
Madison, Wis., Dec. 18 - Royal Bank of Canada priced $2 million of trigger phoenix autocallable optimization securities due Dec. 22, 2014 linked to Barrick Gold Corp. shares, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annual rate of 14.7% if Barrick stock closes at or above the 65% trigger level on a quarterly observation date.
The notes will be called at par of $10 plus the contingent coupon if the shares close at or above the initial price on any quarterly observation date.
The payout at maturity will be par plus the contingent coupon unless Barrick shares finish below the trigger level, in which case investors will be fully exposed to any losses.
UBS Financial Services Inc. and RBC Capital Markets, LLC are the agents.
| Issuer: | Royal Bank of Canada
|
| Issue: | Trigger phoenix autocallable optimization securities
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| Underlying stock: | Barrick Gold Corp. (Symbol: ABX)
|
| Amount: | $2 million
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| Maturity: | Dec. 22, 2014
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| Coupon: | 14.7% per year, payable quarterly if Barrick stock closes at or above trigger level on quarterly observation date
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| Price: | Par of $10
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| Payout at maturity: | Par plus contingent coupon unless Barrick shares finish below trigger level, in which case full exposure to any losses
|
| Call: | At par plus contingent coupon if shares close at or above initial price on any quarterly observation date
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| Initial price: | $17.05
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| Trigger price: | $11.08, 65% of initial price
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| Pricing date: | Dec. 16
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| Settlement date: | Dec. 19
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| Agents: | UBS Financial Services Inc. and RBC Capital Markets, LLC
|
| Fees: | 3.5%
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| Cusip: | 78010Y299
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