Published on 1/9/2014 in the Prospect News Structured Products Daily.
New Issue: RBC sells $6.61 million contingent coupon callable yield notes linked to Best Buy
By Marisa Wong
Madison, Wis., Jan. 9 - Royal Bank of Canada priced $6.61 million of contingent coupon callable yield notes due Jan. 13, 2016 linked to the common stock of Best Buy Co., Inc., according to a 424B2 filing with the Securities and Exchange Commission.
If Best Buy stock closes at or above the barrier price, 55% of the initial share price, on a quarterly observation date, the notes will pay a contingent payment of 12.1% per year for that quarter.
If the final share price is greater than or equal to the 55% barrier level, the payout at maturity will be par plus the contingent payment. Otherwise, investors will receive a number of shares equal to $1,000 divided by the initial stock price or, at the issuer's option, the cash value of those shares.
The notes are callable in whole on any coupon payment date.
RBC Capital Markets, LLC and Barclays are the agents.
| Issuer: | Royal Bank of Canada
|
| Issue: | Contingent coupon autocallable yield notes
|
| Underlying stock: | Best Buy Co., Inc. (NYSE: BBY)
|
| Amount: | $6,609,000
|
| Maturity: | Jan. 13, 2016
|
| Contingent payment: | 12.1% per year, payable quarterly if Best Buy stock closes at or above coupon barrier level on observation date for that quarter
|
| Price: | Par
|
| Payout at maturity: | If final share price is greater than or equal to barrier level, par plus contingent payment; otherwise, a number of shares equal to $1,000 divided by initial stock price or, at issuer's option, cash value of those shares
|
| Call option: | In whole on any coupon payment date
|
| Initial share price: | $37.84
|
| Barrier price: | $20.81, 55% of initial share price
|
| Pricing date: | Jan. 8
|
| Settlement date: | Jan. 13
|
| Agents: | RBC Capital Markets, LLC and Barclays
|
| Fees: | 1.75%
|
| Cusip: | 78010UMZ7
|
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