By Susanna Moon
Chicago, July 3 – Royal Bank of Canada priced $475,000 of autocallable contingent coupon barrier notes due June 13, 2019 linked to Caterpillar Inc. stock, 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 the stock closes at or above its 80% coupon barrier on the observation date for that quarter.
The notes will be called if the stock closes at or above its initial level on any interest payment date.
The payout at maturity will be par plus the final coupon unless the stock finishes below its 80% trigger level, in which case investors will be fully exposed to any losses.
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: | Caterpillar Inc. (Symbol: CAT)
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| Amount: | $475,000
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| Maturity: | June 13, 2019
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| Coupon: | 8%, payable quarterly if stock closes at or above 80% coupon barrier on observation date for that quarter
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| Price: | Par
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| Payout at maturity: | Par plus final coupon unless stock finishes below 80% trigger level, in which case 1% loss for each 1% decline
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| Call: | At par if stock closes at or above its initial level on any interest payment date beginning Dec. 11, 2017
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| Initial levels: | $105.92
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| Trigger levels: | $84.74, 80% of initial level
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| Pricing date: | June 9
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| Settlement date: | June 14
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| Agents: | RBC Capital Markets, LLC
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| Fees: | 1.75%
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| Cusip: | 78012KU21
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