By Taylor Fox
New York, Dec. 21 – Royal Bank of Canada priced $500,000 of contingent income notes due Dec. 15, 2022 linked to the common stock of Square, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes will pay a contingent coupon at the rate of 10% per year if the stock closes at or above its coupon barrier, 65% of its initial share price, on the observation date for that quarter.
The payout at maturity will be par plus 15.15% plus the final coupon if the stock finishes above its initial level.
If the stock declines and finishes above 65% of its initial level, the payout will be par.
Otherwise, investors will be fully exposed to the losses of the stock, payable in either shares or cash at the option of the issuer.
RBC Capital Markets, LLC is the underwriter.
| Issuer: | Royal Bank of Canada
|
| Issue: | Contingent income notes
|
| Underlying stock: | Square, Inc.
|
| Amount: | $500,000
|
| Maturity: | Dec. 15, 2022
|
| Coupon: | 10% per year, payable quarterly if the stock closes at or above coupon barrier on observation date for that quarter
|
| Price: | Par
|
| Payout at maturity: | Par plus 15.15% plus final coupon if stock finishes above initial price; par if stock declines but not more than 35%; otherwise, full exposure to losses paid either in shares or cash at the issuer’s option
|
| Initial share price: | $217.25
|
| Coupon barrier: | $141.21, or 65% of initial share price
|
| Threshold value: | $141.21, or 65% of initial share price
|
| Pricing date: | Dec. 10
|
| Settlement date: | Dec. 15
|
| Agent: | RBC Capital Markets, LLC
|
| Fees: | None
|
| Cusip: | 78013GZJ7
|
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