Published on 5/30/2017 in the Prospect News Structured Products Daily.
New Issue: RBC prices $1.3 million contingent coupon autocallables linked to Cisco, IBM
By Angela McDaniels
Tacoma, Wash., May 30 – Royal Bank of Canada priced $1.3 million of autocallable contingent coupon barrier notes due May 29, 2020 linked to the lesser performing of the common stocks of Cisco Systems, Inc. and International Business Machines Corp., according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes pay a contingent coupon at the rate of 11% per year if each stock closes at or above its trigger price, 75% of its initial price, on the observation date for that quarter.
Beginning Nov. 27, 2017, the notes will be called at par if each stock closes at or above its initial share price on any quarterly observation date.
The payout at maturity will be par unless either stock finishes below its trigger price, in which case investors will receive a number of shares of the lesser-performing stock equal to $1,000 divided by that stock’s initial share price.
RBC Capital Markets, LLC is the underwriter.
| Issuer: | Royal Bank of Canada
|
| Issue: | Autocallable contingent coupon barrier notes
|
| Underlying stocks: | Cisco Systems, Inc. (Symbol: CSCO) and International Business Machines Corp. (Symbol: IBM)
|
| Amount: | $1,303,000
|
| Maturity: | May 29, 2020
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| Coupon: | 11% per year, payable quarterly if each stock closes at or above trigger price on observation date for that quarter
|
| Price: | Par
|
| Payout at maturity: | Par unless either stock finishes below trigger price, in which case investors will receive number of shares of lesser-performing stock equal to $1,000 divided by that stock’s initial share price
|
| Call: | Beginning Nov. 27, 2017, at par if each stock closes at or above initial share price on any quarterly observation date
|
| Initial share prices: | $31.44 for Cisco and $153.20 for IBM
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| Trigger prices: | $23.58 for Cisco and $114.90 for IBM; 75% of initial prices
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| Pricing date: | May 25
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| Settlement date: | May 31
|
| Underwriter: | RBC Capital Markets, LLC
|
| Fees: | 2.25%
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| Cusip: | 78013GDK8
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