By Wendy Van Sickle
Columbus, Ohio, Feb. 24 – Royal Bank of Canada priced $1.49 million of phoenix autocallable notes with memory coupon due March 10, 2021 linked to the common stock of Charles Schwab Corp., according to a 424B2 filing with the Securities and Exchange Commission.
If the stock closes at or above the coupon barrier level, 78% of the initial level, on a quarterly observation date, the notes will pay a contingent coupon for that quarter at an annualized rate of 10%, plus any previously unpaid contingent coupons.
The notes will be called at par plus the contingent coupon and any previously unpaid coupons if the shares close at or above the initial share price on any observation date other than the final date.
The payout at maturity will be par plus the final coupon and any previously unpaid coupons unless Charles Schwab shares finish below the trigger price, in which case investors will lose 1% for every 1% that the stock declines from its initial price.
RBC Capital Markets, LLC is the agent. JPMorgan Chase Bank NA and J.P. Morgan Securities LLC are the placement agents.
| Issuer: | Royal Bank of Canada
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| Issue: | Phoenix autocallable notes with memory coupon feature
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| Underlying stock: | Charles Schwab Corp. (Symbol: SCHW)
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| Amount: | $1.49 million
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| Maturity: | March 10, 2021
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| Coupon: | 10% per year, payable quarterly plus any previously unpaid contingent coupons if shares close at or above coupon barrier price on any quarterly observation date
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| Price: | Par
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| Payout at maturity: | Par plus final coupon and any previously unpaid coupons unless shares finish below trigger price, in which case full exposure to stock’s decline
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| Call: | Automatically at par plus contingent coupon and any previously unpaid coupons if shares close at or above initial price on any observation date other than final date
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| Initial share price: | $46.19
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| Coupon barrier/trigger price: | $36.03, 78% of initial share price
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| Pricing date: | Feb. 21
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| Settlement date: | Feb. 26
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| Agent: | RBC Capital Markets, LLC
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| Placement agents: | JPMorgan Chase Bank NA and J.P. Morgan Securities LLC
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| Fees: | 1%
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| Cusip: | 78015KRX4
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