By Toni Weeks
San Luis Obispo, Calif., April 6 – Royal Bank of Canada priced $1.61 million of contingent income autocallable securities due April 7, 2016 linked to Netflix, Inc. shares, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annual rate of 11.1% if Netflix shares close at or above the downside threshold level, 70% of the initial share price, on a determination date for that quarter.
The notes will be called at par of $10 plus the contingent coupon if Netflix shares close at or above the initial share price on any of the first three determination dates.
If the stock finishes at or above the barrier level, the payout at maturity will be par plus the contingent coupon.
Otherwise, investors will receive a number of Netflix shares equal to $10 divided by the initial share price or, at the issuer’s option, the cash equivalent.
RBC Capital Markets, LLC is the agent with Morgan Stanley Wealth Management as distributor.
Issuer: | Royal Bank of Canada
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Issue: | Contingent income autocallable securities
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Underlying index: | Netflix, Inc. (Symbol: NFLX)
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Amount: | $1,605,200
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Maturity: | April 7, 2016
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Contingent payment: | 11.1% per year if Netflix stock closes at or above barrier level on determination date for that quarter
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Price: | Par of $10
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Payout at maturity: | Par plus contingent coupon if Netflix stock finishes at or above barrier level; otherwise 0.0241 Netflix shares per $10 principal amount or, at issuer’s option, cash equivalent
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Call: | At par plus contingent payment if Netflix stock closes at or above initial share price on any of first three determination dates
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Initial share price: | $414.08
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Barrier level: | $289.86, 70% of initial price
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Pricing date: | April 2
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Settlement date: | April 8
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Agent: | RBC Capital Markets, LLC with Morgan Stanley Wealth Management as dealer
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Fees: | 1.75%
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Cusip: | 780082731
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