By Kiku Steinfeld
Chicago, Nov. 20 – Royal Bank of Canada priced $2.07 million of trigger autocallable contingent yield notes due Nov. 2, 2021 linked to the common stock of Kellogg Co., according to a 424B2 filing with the Securities and Exchange Commission.
Every six months, the notes will pay a contingent coupon at the rate of 8% per year if the shares close at or above the coupon barrier, 70.75% of the initial share price, on the observation date for that period.
The notes will be automatically called at par of $10 plus the contingent coupon if the shares close at or above the initial share price on any semiannual observation date.
If the notes are not called and the final share price is greater than or equal to the downside threshold level, 70.75% of the initial share price, the payout at maturity will be par plus the coupon. Otherwise, investors will lose 1% for every 1% that the final share price is less than the initial share price.
UBS Financial Services Inc. and RBC Capital Markets, LLC are the agents.
Issuer: | Royal Bank of Canada
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Issue: | Trigger autocallable contingent yield notes
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Underlying stock: | Kellogg Co.
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Amount: | $2,070,000
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Maturity: | Nov. 2, 2021
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Contingent coupon: | 8%, payable semiannually if stock closes at or above coupon barrier level on related semiannual observation date
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Price: | Par of $10
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Payout at maturity: | Par plus coupon unless stock finishes below downside threshold, in which case 1% loss for each 1% decline from initial price
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Call: | Automatically at par plus coupon if stock closes at or above initial price on any semiannual observation date
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Initial price: | $61.06
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Coupon barrier: | $43.20, 70.75% of initial price
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Downside threshold: | $43.20, 70.75% of initial price
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Pricing date: | Oct. 28
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Settlement date: | Oct. 31
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Agents: | UBS Financial Services Inc. and RBC Capital Markets, LLC
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Fees: | 1.5%
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Cusip: | 78014J686
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