By Marisa Wong
Morgantown, W.Va., Sept. 9 – Royal Bank of Canada priced $1.93 million of contingent income autocallable securities due Sept. 7, 2018 linked to Qualcomm 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 10.25% if the shares close at or above the 75% downside threshold level on the observation date for that quarter.
The notes will be called at par plus the contingent coupon if the stock closes at or above the initial level on any of the first 11 quarterly determination dates.
The payout at maturity will be par plus the final coupon unless the shares finish below the 75% downside threshold level, in which case investors will be fully exposed to the share price decline.
RBC Capital Markets, LLC is the agent with Morgan Stanley Wealth Management handling distribution.
| Issuer: | Royal Bank of Canada
|
| Issue: | Contingent income auto-callable securities
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| Underlying stock: | Qualcomm Inc. (Symbol: QCOM)
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| Amount: | $1,931,100
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| Maturity: | Sept. 7, 2018
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| Coupon: | 10.25% annualized, for each quarter that stock closes at or above downside threshold level on determination date for that quarter
|
| Price: | Par of $10
|
| Payout at maturity: | Par plus contingent coupon if stock finishes at or above downside threshold level; otherwise, full exposure to share price decline
|
| Call: | At par plus contingent payment if stock closes at or above initial share price on any of first 11 determination dates
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| Initial level: | $54.29
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| Barrier level: | $40.72, 75% of initial price
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| Pricing date: | Sept. 4
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| Settlement date: | Sept. 10
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| Agent: | RBC Capital Markets, LLC with Morgan Stanley Wealth Management handling distribution
|
| Fees: | 2.5%
|
| Cusip: | 78013D649
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