New Issue: RBC prices $5.56 million contingent income autocallables on Palo Alto

By Marisa Wong

Madison, Wis., Sept. 23 – Royal Bank of Canada priced $5.56 million of contingent income autocallable securities due Sept. 22, 2017 linked to Palo Alto Networks, Inc. shares, according to an FWP filing with the Securities and Exchange Commission.

The notes will pay a contingent quarterly coupon at an annual rate of 13.3% if Palo Alto Networks stock closes at or above the 70% downside threshold level on a determination date for that quarter.

The notes will be redeemed at par of $10 plus the contingent payment if the stock closes at or above the initial level on any of the first 11 quarterly determination dates.

If the notes are not called, the payout at maturity will be par plus the contingent payment unless the stock finishes below its downside threshold level, in which case the payout will be a number of Palo Alto Networks 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. Morgan Stanley Wealth Management is the dealer.

Issuer:	Royal Bank of Canada
Issue:	Contingent income autocallable securities
Underlying stock:	Palo Alto Networks, Inc. (Symbol: PANW)
Amount:	$5,563,090
Maturity:	Sept. 22, 2017
Coupon:	Each quarter, notes pay contingent coupon at annual rate of 13.3% if Palo Alto shares close at or above downside threshold level on determination date for that quarter
Price:	Par
Payout at maturity:	If final share price is greater than or equal to downside threshold level, par plus final contingent interest payment, if any; otherwise, a number of shares equal to $10 divided by initial price or, at issuer’s option, cash value of those shares
Call:	Automatically at par plus contingent coupon if Palo Alto shares close at or above initial share price on any of first 11 quarterly determination dates
Initial share price:	$99.28
Downside threshold:	$69.50, 70% of initial share price
Exchange ratio:	0.1007
Pricing date:	Sept. 19
Settlement date:	Sept. 24
Agent:	RBC Capital Markets, LLC with Morgan Stanley Wealth Management handling distribution
Fees:	2%
Cusip:	78011Y371

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