By Kiku Steinfeld
Chicago, July 19 – Royal Bank of Canada priced $3.02 million of callable contingent coupon barrier notes due June 2, 2023 linked to the common stock of American Depositary Shares of Alibaba Group Holding Ltd., according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes pay a contingent coupon at the rate of 10.85% per year if the stock closes at or above its trigger price, 70% of its initial price, on the observation date for that quarter.
The notes will be called at par if the stock closes at or above its initial share price on any quarterly observation date after six months.
The payout at maturity will be par unless any stock finishes below 70% of its initial value, in which case investors will receive a number of shares of the least performing stock equal to $1,000 divided by the initial share price or, at the issuer’s option, the cash equivalent.
RBC Capital Markets, LLC is the agent.
| Issuer: | Royal Bank of Canada
|
| Issue: | Callable contingent coupon barrier notes
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| Underlying stock: | Alibaba Group Holding Ltd.
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| Amount: | $3,022,000
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| Maturity: | June 2, 2023
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| Coupon: | 10.85%, payable quarterly if stock closes at or above trigger price on observation date for that quarter
|
| Price: | Par
|
| Payout at maturity: | If stock closes at or above trigger price, par; otherwise, 4.7 shares or cash
|
| Call: | At par if stock closes at or above initial share price on any quarterly observation date after six months
|
| Initial share price: | $212.74
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| Trigger price: | $148.92, 70% of initial share price
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| Pricing date: | May 27
|
| Settlement date: | June 2
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| Agent: | RBC Capital Markets, LLC
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| Fees: | 1.5%
|
| Cusip: | 78013GP82
|
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