Published on 3/2/2015 in the Prospect News Structured Products Daily.
New Issue: RBC prices $980,000 trigger phoenix autocallables on Amazon, Priceline
By Susanna Moon
Chicago, March 2 – Royal Bank of Canada priced $980,000 of trigger phoenix autocallable notes due Aug. 27, 2015 linked to the worst performing of the common stocks of Amazon.com, Inc. and Priceline Group Inc., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annual rate of 8% if each stock closes at or above its coupon barrier – 80% of the initial price – on an observation date for that quarter.
The notes will be called at par plus the contingent coupon if each stock closes at or above its initial price on any quarterly observation date.
The payout at maturity will be par plus the contingent coupon unless any stock finishes below its barrier level, in which case investors will be fully exposed to any losses of the worst performing stock.
RBC Capital Markets, LLC is the underwriter.
| Issuer: | Royal Bank of Canada
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| Issue: | Trigger phoenix autocallable notes
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| Underlying stocks: | Amazon.com, Inc. (Symbol: AMZN) and Priceline Group Inc. (Symbol: PCLN)
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| Amount: | $980,000
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| Maturity: | Aug. 27, 2015
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| Coupon: | 8% per year if each stock closes at or above its barrier price on a quarterly observation date;
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| Price: | Par
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| Payout at maturity: | If each stock finishes at or above barrier level, par plus contingent coupon; otherwise, full exposure to losses of worst performing stock
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| Call: | At par plus contingent coupon if each stock closes at or above its initial price on any quarterly observation date
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| Initial prices: | $385.37 for Amazon, $1,250.86 for Priceline
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| Barrier prices: | $308.30 for Amazon, $1,000.69 for Priceline; 80% of initial prices
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| Pricing date: | Feb. 25
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| Settlement date: | Feb. 27
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| Underwriter: | RBC Capital Markets, LLC
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| Fees: | 1.75%
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| Cusip: | 78012KBZ9
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