By Jennifer Chiou
New York, Dec. 8 – Royal Bank of Canada priced $14,616,450 of contingent income autocallable securities due Dec. 10, 2015 linked to American Airlines Group Inc. shares, according to a 424B2 filing with the Securities and Exchange Commission.
If American Airlines shares close at or above the downside threshold level, 70% of the initial share price, on a quarterly determination date, the notes will pay a contingent payment of 3.375% for that quarter.
The notes will be called at par of $10 plus the contingent coupon if American Airlines shares close at or above the initial share price on any of the first three quarterly determination dates.
If the stock finishes at or above the downside threshold level, the payout at maturity will be par plus the final contingent coupon.
Otherwise, investors will receive a number of American Airlines shares equal to $10 divided by the initial share price or, at the issuer’s option, the cash equivalent.
RBC Capital Markets, LLC is the agent with Morgan Stanley Wealth Management as distributor.
| Issuer: | Royal Bank of Canada
|
| Issue: | Contingent income autocallable securities
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| Underlying stock: | American Airlines Group Inc. (Symbol: AAL)
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| Amount: | $14,616,450
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| Maturity: | Dec. 10, 2015
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| Contingent coupon: | 3.375% for each quarter that American Airlines stock closes at or above downside threshold level on determination date for that quarter
|
| Price: | Par
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| Payout at maturity: | If stock finishes at or above downside threshold level, par plus contingent payment; otherwise 0.196 American Airlines shares or cash equivalent
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| Call: | At par plus contingent payment if stock closes at or above initial level on any of first three quarterly determination dates
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| Initial share price: | $51.01
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| Downside threshold: | $35.71, 70% of initial share price
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| Pricing date: | Dec. 5
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| Settlement date: | Dec. 10
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| Agent: | RBC Capital Markets, LLC with Morgan Stanley Smith Barney LLC
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| Fees: | 1.75%
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| Cusip: | 78011Y744
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