By Angela McDaniels
Tacoma, Wash., March 22 – Royal Bank of Canada priced $8.46 million of contingent income autocallable securities due Sept. 22, 2016 linked to the common units of Blackstone Group LP, according to a 424B2 filing with the Securities and Exchange Commission.
If Blackstone units close at or above the downside threshold level, 75% of the initial unit price, on a monthly determination date, the notes will pay a contingent payment that month at an annualized rate of 18%.
The notes will be called at par of $10 plus the contingent coupon if Blackstone units close at or above the initial unit price on any monthly determination date other than the final determination date.
If the final unit price is greater than or equal to the downside threshold level, the payout at maturity will be par plus the final contingent coupon. Otherwise, investors will lose 1% for every 1% that the final unit price is less than the initial unit price.
RBC Capital Markets LLC is the agent. Morgan Stanley Smith Barney LLC is handling distribution.
| Issuer: | Royal Bank of Canada
|
| Issue: | Contingent income autocallable securities
|
| Underlying units: Blackstone Group LP (Symbol: BX)
|
| Amount: | $8,457,080
|
| Maturity: | Sept. 22, 2016
|
| Coupon: | 18% per year, payable monthly if Blackstone units close at or above downside threshold level on determination date for that month
|
| Price: | Par of $10.00
|
| Payout at maturity: | If final unit price is greater than or equal to downside threshold level, par plus final contingent coupon; otherwise, 1% loss for every 1% that final unit price is less than initial unit price
|
| Call: | At par plus contingent coupon if Blackstone units close at or above initial unit price on any monthly determination date other than final determination date
|
| Initial unit price: | $27.99
|
| Downside threshold: | $20.99, 75% of initial unit price
|
| Pricing date: | March 18
|
| Settlement date: | March 23
|
| Agent: | RBC Capital Markets LLC
|
| Distribution: | Morgan Stanley Smith Barney LLC
|
| Fees: | 1.25%
|
| Cusip: | 78013C823
|
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