Published on 3/2/2017 in the Prospect News Structured Products Daily.
New Issue: RBC sells $7.16 million contingent income autocallables on Blackstone
By Devika Patel
Knoxville, Tenn., March 2 – Royal Bank of Canada priced $7.16 million of contingent income autocallable securities due March 1, 2018 linked to the common units of the Blackstone Group LP, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent coupon each quarter at an annualized rate of 10.65% if Blackstone units close at or above the downside threshold level, 80% of the initial unit price, on the determination date for that quarter.
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 May 24, 2017, Aug. 24, 2017 or Nov. 24, 2017.
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 each 1% decline.
RBC Capital Markets, LLC is the agent. Morgan Stanley Wealth Management is a dealer.
| Issuer: | Royal Bank of Canada
|
| Issue: | Contingent income autocallable securities
|
| Underlying units: Blackstone Group LP (Symbol: BX)
|
| Amount: | $7,157,450
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| Maturity: | March 1, 2018
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| Coupon: | 10.65% per year, payable quarterly if units close at or above downside threshold level on determination date for that quarter
|
| Price: | Par of $10.00
|
| Payout at maturity: | Par plus contingent coupon if units finish at or above downside threshold level; otherwise, 1% loss for each 1% decline
|
| Call: | At par plus contingent payment if units close at or above initial unit price on May 24, 2017, Aug. 24, 2017 or Nov. 24, 2017
|
| Initial price: | $29.54
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| Downside threshold: | $23.63, 80% of initial unit price
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| Pricing date: | Feb. 24
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| Settlement date: | March 1
|
| Agent: | RBC Capital Markets, LLC
|
| Fees: | 1.25%
|
| Cusip: | 78014E422
|
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