By Toni Weeks
San Luis Obispo, Calif., June 3 - Royal Bank of Canada priced $23.47 million of contingent income autocallable securities due June 2, 2017 linked to the common stock of Blackstone Group LP, according to a 424B2 filing with the Securities and Exchange Commission.
If Blackstone shares close at or above the downside threshold level - 70% of the initial share price - on a quarterly determination date, investors will receive a contingent payment of $0.25 for each $10.00 note. Otherwise, no contingent payment will be made for that period. The contingent payment is equivalent to 10% per year.
If the closing share price is greater than or equal to the initial share price on any of the first 11 quarterly determination dates, the notes will be automatically redeemed at par plus the contingent payment.
If the notes are not called and the final share price is greater than or equal to the downside threshold level, the payout at maturity will be par plus the contingent payment. If the final price is less than the downside threshold level, the payout will be a number of Blackstone shares equal to $10.00 divided by the initial share price or, at the issuer's option, an equivalent cash amount.
RBC Capital Markets, LLC is the agent. Morgan Stanley Wealth Management will handle distribution.
| Issuer: | Royal Bank of Canada
|
| Issue: | Contingent income autocallable securities
|
| Underlying stock: | Blackstone Group LP (Symbol: BX)
|
| Amount: | $23,469,180
|
| Maturity: | June 2, 2017
|
| Contingent payment: | If Blackstone shares close at or above downside threshold on quarterly determination date, $0.25 per note; otherwise, no contingent payment for that period
|
| Price: | Par of $10.00
|
| Payout at maturity: | If final share price is greater than or equal to downside threshold, par plus $0.25; if final share price is less than downside threshold, 0.3217 Blackstone shares or, at issuer's option, cash amount equal to value of those shares
|
| Call: | Automatically at par plus $0.25 if closing share price is greater than or equal to initial share price on any of first 11 quarterly determination dates
|
| Initial share price: | $31.08
|
| Downside threshold: | $21.76, 70% of initial share price
|
| Pricing date: | May 30
|
| Settlement date: | June 4
|
| Agent: | RBC Capital Markets, LLC
|
| Distribution: | Morgan Stanley Wealth Management
|
| Fees: | 2.25%
|
| Cusip: | 78011Q501
|
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