By Wendy Van Sickle
Columbus, Ohio, Oct. 7 – Royal Bank of Canada priced $10 million of 11% buffered income autocallable securities with downside leverage due Oct. 6, 2021 linked to the common stock of Amazon.com, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
Interest is payable monthly.
The notes will be called at par of $10,000 plus the coupon if the shares close at or above the initial share price on any quarterly determination date other than the final determination date.
If the final share price is greater than or equal to the downside threshold level, 80% of the initial level, the payout at maturity will be par plus the final coupon. Otherwise, investors will receive a number of shares equal to $10,000 divided by the downside threshold level or, at the issuer’s option, the cash equivalent.
RBC Capital Markets, LLC is the agent and Morgan Stanley Wealth Management is the dealer.
Issuer: | Royal Bank of Canada
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Issue: | Buffered income autocallable securities with downside leverage
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Underlying stock: | Amazon.com, Inc.
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Amount: | $10 million
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Maturity: | Oct. 6, 2021
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Coupon: | 11% per year, payable monthly
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Price: | Par of $10,000
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Payout at maturity: | If final share price is greater than or equal to downside threshold level, par; otherwise, shares of the stock equal to exchange ratio
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Call: | At par plus coupon if shares close at or above initial share price on any quarterly determination date other than final determination date
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Initial share price: | $3,148.73
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Downside threshold: | $2,518.98, 80% of initial share price
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Pricing date: | Oct. 1
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Settlement date: | Oct. 6
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Agent: | RBC Capital Markets, LLC
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Dealer: | Morgan Stanley Wealth Management
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Fees: | 0.2%
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Cusip: | 78014M226
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