Published on 7/10/2023 in the Prospect News Structured Products Daily.
New Issue: RBC prices $887,000 autocallable contingent coupon barrier notes on PayPal
By Angela McDaniels
Tacoma, Wash., July 10 – Royal Bank of Canada priced $887,000 of autocallable contingent coupon barrier notes with memory coupon due July 31, 2025 linked to the common stock of PayPal Holdings, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
The notes pay a contingent quarterly coupon at an annual rate of 12% if the stock closes at or above its coupon barrier price, 50% of its initial price, on the corresponding observation date. Any previously unpaid contingent coupons will also be paid.
The notes will be called at par plus the coupon if the stock closes at or above its initial share price on any quarterly observation date after six months.
If the notes are not called, the payout at maturity will be par plus the final coupon unless the stock finishes below its 50% trigger price, in which case investors will be exposed to the decline of PayPal stock from the initial share price.
RBC Capital Markets, LLC is the underwriter.
Issuer: | Royal Bank of Canada
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Issue: | Autocallable contingent coupon barrier notes with memory coupon
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Underlying stock: | PayPal Holdings, Inc.
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Amount: | $887,000
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Maturity: | July 31, 2025
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Coupon: | 12% annual rate, payable quarterly if stock closes at or above coupon barrier price on the corresponding observation date; previously unpaid contingent coupons will also be paid
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Price: | Par
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Payout at maturity: | Par plus final coupon unless stock finishes below trigger price, in which case exposure to stock’s decline
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Call: | At par plus coupon if stock closes at or above initial share price on any quarterly observation date after six months
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Initial share price: | $86.42
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Coupon barrier price: | $43.21, or 50% of initial share price
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Trigger price: | $43.21, or 50% of initial share price
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Pricing date: | July 27, 2022
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Settlement date: | July 29, 2022
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Underwriter: | RBC Capital Markets, LLC
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Fees: | 2.25%
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Cusip: | 78016FPY4
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