By Susanna Moon
Chicago, July 13 – Royal Bank of Canada priced $4 million of callable contingent coupon barrier notes due July 5, 2019 linked to Microsoft Corp. 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 8.5% if the stock closes at or above its 75% coupon barrier on the observation date for that quarter.
The notes are callable on any interest payment date.
The payout at maturity will be par plus the final coupon unless the stock finishes below its 75% 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: | Callable contingent coupon barrier notes
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| Underlying stock: | Microsoft Corp. (Symbol: MSFT)
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| Amount: | $4 million
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| Maturity: | July 5, 2019
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| Coupon: | 8.5%, payable quarterly if stock closes at or above 75% 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 75% trigger level, in which case 1% loss for each 1% decline
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| Call option: | At par on any interest payment date beginning Dec. 11, 2017
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| Initial levels: | $68.49
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| Trigger levels: | $51.37, 75% of initial level
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| Pricing date: | June 29
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| Settlement date: | July 5
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| Agents: | RBC Capital Markets, LLC
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| Fees: | 1%
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| Cusip: | 78013GEK7
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