Published on 4/24/2017 in the Prospect News Structured Products Daily.
New Issue: RBC sells $1.53 million contingent coupon barrier autocallables on Tesla
By Wendy Van Sickle
Columbus, Ohio, April 24 – Royal Bank of Canada priced $1.53 million of autocallable contingent coupon barrier notes due April 25, 2019 linked to Tesla, Inc. stock, according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes pay a contingent coupon at an annual rate of 9% if the stock closes at or above the trigger level, 55% of the initial share price, on the observation date for that quarter.
The notes will be called at par if the stock closes above its initial level on any interest payment date after six months.
The payout at maturity will be par unless the stock finishes below its 55% trigger price, in which case investors will receive a number of JPMorgan shares equal to $1,000 divided by the initial share price or, at the issuer’s option, the cash equivalent.
RBC Capital Markets, LLC is the underwriter.
| Issuer: | Royal Bank of Canada
|
| Issue: | Autocallable contingent coupon barrier notes
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| Underlying stock: | Tesla, Inc.
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| Amount: | $1,531,000
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| Maturity: | April 25, 2019
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| Coupon: | 9% per year, payable each quarter that stock closes at or above trigger price on observation date for that quarter
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| Price: | Par
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| Payout at maturity: | Par unless stock finishes below trigger price, in which case number of Tesla shares equal to $1,000 divided by initial share price or, at issuer’s option, cash equivalent
|
| Call: | At par if stock closes above initial level on any interest payment date after six months
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| Initial share price: | $305.60
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| Trigger price: | $152.80, 55% of initial share price
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| Pricing date: | April 21
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| Settlement date: | April 26
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| Underwriter: | RBC Capital Markets, LLC
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| Fees: | 1.75%
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| Cusip: | 78012KJ73
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