Published on 12/23/2016 in the Prospect News Structured Products Daily.
New Issue: RBC prices $1.15 million of contingent coupon barrier autocallables on Amazon stock
By Devika Patel
Knoxville, Tenn., Dec. 23 – Royal Bank of Canada priced $1.15 million of autocallable contingent coupon barrier notes due Dec. 26, 2017 linked to the common stock of Amazon.com, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes will pay a contingent coupon at an annual rate of 11% if the stock closes at or above the 80% barrier price on the observation date for that quarter.
The notes will be called at par if the stock closes at or above its initial price on March 20, 2017, June 20, 2017, Sept. 20, 2017 or Dec. 20, 2017.
The payout at maturity will be par unless the stock finishes below the 80% barrier price, in which case investors will receive a number of Amazon shares equal to the principal divided by the initial share price, or, at the issuer’s option, the cash equivalent.
RBC Capital Markets, LLC is the underwriter.
| Issuer: | Royal Bank of Canada
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| Issue: | Autocallable contingent coupon barrier notes
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| Underlying stock: | Amazon.com, Inc. (Symbol: AMZN)
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| Amount: | $1,147,000
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| Maturity: | Dec. 26, 2017
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| Coupon: | 11%, payable quarterly if stock closes at or above barrier price on observation date for that quarter
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| Price: | Par of $1,000
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| Payout at maturity: | Par unless stock finishes below trigger price, in which case a number of Amazon shares equal to the principal divided by the initial share price, or, at issuer’s option, cash equivalent
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| Call: | At par if stock closes at or above initial price on March 20, 2017, June 20, 2017, Sept. 20, 2017 or Dec. 20, 2017
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| Initial price: | $771.22
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| Barrier price: | $616.98, 80% of initial price
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| Pricing date: | Dec. 20
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| Settlement date: | Dec. 23
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| Agents: | RBC Capital Markets, LLC
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| Fees: | 1.25%
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| Cusip: | 78013GBW4
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