RBC plans trigger phoenix autocallables with memory coupon on stocks

By Marisa Wong

Madison, Wis., June 13 – Royal Bank of Canada plans to price trigger phoenix autocallable notes with memory coupon due June 23, 2017 linked to the worst performing of two equity securities, according to an FWP filing with the Securities and Exchange Commission.

The underlying stocks are Apple Inc. and Qualcomm, Inc.

If the closing price of each underlying equity closes at or above its coupon barrier – 75% of the initial price – on a quarterly observation date, the issuer will pay a contingent coupon for that quarter at a rate of 9.2% per year plus an amount equal to the memory coupon, if any.

The memory coupon is the product of the contingent coupon times the number of contingent coupon payments, if any, that were not previously paid on their respective coupon payment dates because the closing price of one or both of the reference stocks was less than its coupon barrier on the corresponding observation date.

If each stock closes at or above its initial price on any quarterly observation date, the notes will be called at par plus the contingent coupon.

If the notes are not called and each stock finishes at or above the 75% trigger level, the payout at maturity will be par plus the contingent coupon. Otherwise, investors will be exposed to the price decline of the worst performing stock from the initial price.

RBC Capital Markets, LLC is the agent.

The notes will price on June 20 and settle on June 25.

The Cusip number is 78010UE29.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.