Published on 3/6/2015 in the Prospect News Structured Products Daily.
New Issue: RBC prices $2.59 million trigger phoenix autocallables on Under Armour
By Marisa Wong
Madison, Wis., March 6 – Royal Bank of Canada priced $2.59 million of trigger phoenix autocallable notes due March 8, 2016 linked to Under Armour, Inc. shares, according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes will pay a contingent coupon at an annual rate of 9.75% if the stock closes at or above its barrier level – 80% of the initial price – on the observation date for that quarter.
The notes will be called at par if the stock closes at or above its initial price on any quarterly observation date.
The payout at maturity will be par plus the contingent coupon unless the stock finishes below the 80% trigger level, in which case investors will receive a number of Under Armour shares equal to $1,000 divided by the initial share price or, at the issuer’s option, the cash value of those shares.
RBC Capital Markets, LLC is the agent.
| Issuer: | Royal Bank of Canada
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| Issue: | Trigger phoenix autocallable optimization securities
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| Underlying stock: | Under Armour, Inc. (NYSE: UA)
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| Amount: | $2,585,000
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| Maturity: | March 8, 2016
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| Coupon: | 9.75%, payable quarterly if stock closes at or above barrier price on observation date for that quarter
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| Price: | Par of $1,000
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| Payout at maturity: | Par plus contingent coupon if Under Armour shares finish at or above trigger price; otherwise, a number of Under Armour shares equal to $1,000 divided by initial share price or, at issuer’s option, cash equivalent
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| Call: | Automatically at par plus contingent coupon if Under Armour shares close at or above initial price on a quarterly observation date
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| Initial share price: | $76.44
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| Barrier/trigger price: | $61.15, 80% of initial price
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| Pricing date: | March 3
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| Settlement date: | March 6
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| Underwriter: | RBC Capital Markets, LLC
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| Fees: | 1.5%
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| Cusip: | 78012KBV8
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