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Share Name | Share Symbol | Market | Type |
---|---|---|---|
Royal Bank of Canada | NYSE:RY | NYSE | Common Stock |
Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
-0.31 | -0.30% | 101.51 | 102.12 | 101.44 | 102.00 | 86,069 | 15:23:23 |
PRICING SUPPLEMENT
Filed Pursuant to Rule 424(b)(2)
Registration Statement No. 333-203433
Dated May 15, 2015
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Investment Description
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Contingent Absolute Return Autocallable Optimization Securities (the “Securities”) are unconditional, unsecured and unsubordinated debt securities issued by Royal Bank of Canada linked to the performance of the common stock of a specific company (the “Underlying Equity”). If the applicable Underlying Equity closes at or above its closing price on the Trade Date (the “Starting Price”) on any Observation Date (which will occur first on August 17, 2015 and then quarterly thereafter as described on page 4 of this pricing supplement), we will automatically call the Securities and pay you a Call Price equal to the principal amount per Security plus a Call Return based on the Call Return Rate. The Call Return increases the longer the Securities are outstanding, as described below. If by maturity the Securities have not been called, and the closing price of one share of the applicable Underlying Equity closes at or above the applicable Trigger Price on the final Observation Date, we will repay the principal amount plus pay you a return at maturity equal to the absolute value of the percentage decline in the price of the applicable Underlying Equity from the Trade Date to the final Observation Date (the “Contingent Absolute Return”). If by maturity the Securities have not been called and the applicable Underlying Equity closes below the applicable Trigger Price on the final Observation Date, the Contingent Absolute Return will not apply, and we will repay less than the principal amount, if anything, resulting in a loss that is proportionate to the decline in the price of the applicable Underlying Equity from the Trade Date to the final Observation Date, up to a 100% loss of your principal amount invested.
Investing in the Securities involves significant risks. The Securities do not pay interest. You may lose some or all of your principal amount. Generally, the higher the Call Return Rate on a Security, the greater the risk of loss on that Security. The Contingent Absolute Return and any contingent repayment of principal apply only if you hold the Securities to maturity. Any payment on the Securities, including any repayment of principal, is subject to our creditworthiness and is not, either directly or indirectly, an obligation of any third party. If we were to default on our payment obligations, you may not receive any amounts owed to you under the Securities and you could lose your entire principal amount. The Securities will not be listed on any securities exchange.
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Features
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Key Dates
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£ Call Return - We will automatically call the Securities for a Call Price equal to the principal amount plus the applicable Call Return based on the Call Return Rate if the closing price of the Underlying Equity on any Observation Date is equal to or greater than the Starting Price. The Call Return increases the longer the Securities are outstanding. If the Securities are not called, investors will have the potential for downside market exposure to the Underlying Equity at maturity if the Final Price is less than the Starting Price.
£ Contingent Absolute Return at Maturity - If you hold the Securities to maturity, the Securities have not been called on any Observation Date including the final Observation Date and the Underlying Equity closes above or equal to the Trigger Price on the final Observation Date, we will pay your full principal amount plus the Contingent Absolute Return. If the Underlying Equity closes below the Trigger Price on the final Observation Date, the Contingent Absolute Return will not apply and we will pay less than your principal amount, if anything, resulting in a loss of your principal amount that will be proportionate to the full negative Underlying Return. The Contingent Absolute Return and any contingent repayment of principal only applies if you hold the Securities to maturity. Any payment on the Securities, including any repayment of principal, is subject to our creditworthiness.
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Trade Date May 15, 2015
Settlement Date May 20, 2015
Observation Dates1 Quarterly (see page 4 for details)
Final Observation Date1 May 17, 2016
Maturity Date1 May 23, 2016
1 Subject to postponement in the event of a market disruption event as described under “General Terms of the Securities – Market Disruption Events” in the accompanying product prospectus supplement no. UBS-TAOS-2.
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NOTICE TO INVESTORS: THE SECURITIES ARE SIGNIFICANTLY RISKIER THAN CONVENTIONAL DEBT INSTRUMENTS. THE ISSUER IS NOT NECESSARILY OBLIGATED TO REPAY THE FULL PRINCIPAL AMOUNT OF THE SECURITIES AT MATURITY, AND THE SECURITIES CAN HAVE DOWNSIDE MARKET RISK SIMILAR TO THE UNDERLYING EQUITY. THIS MARKET RISK IS IN ADDITION TO THE CREDIT RISK INHERENT IN PURCHASING OUR DEBT OBLIGATION. YOU SHOULD NOT PURCHASE THE SECURITIES IF YOU DO NOT UNDERSTAND OR ARE NOT COMFORTABLE WITH THE SIGNIFICANT RISKS INVOLVED IN INVESTING IN THE SECURITIES.
YOU SHOULD CAREFULLY CONSIDER THE RISKS DESCRIBED UNDER ‘‘KEY RISKS’’ BEGINNING ON PAGE 6 AND UNDER ‘‘RISK FACTORS’’ BEGINNING ON PAGE PS-4 OF THE PRODUCT PROSPECTUS SUPPLEMENT NO. UBS TAOS-2 BEFORE PURCHASING ANY SECURITIES. EVENTS RELATING TO ANY OF THOSE RISKS, OR OTHER RISKS AND UNCERTAINTIES, COULD ADVERSELY AFFECT THE MARKET VALUE OF, AND THE RETURN ON, YOUR SECURITIES. YOU MAY LOSE SOME OR ALL OF THE PRINCIPAL AMOUNT OF THE SECURITIES.
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Securities Offerings
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This pricing supplement relates to three separate Contingent Absolute Return Autocallable Optimization Securities that we are offering. Each Security is linked to a different Underlying Equity, and each of the Securities has a different Call Return Rate, Starting Price and Trigger Price, as specified in the table below. The potential Call Prices for each Observation Date are set forth under “Final Terms – Call Return/Call Return Rate” on page 4 of this pricing supplement. The Securities are offered at a minimum investment of 100 Securities at $10.00 per Security (representing a $1,000 investment), and integral multiples of $10.00 in excess thereof. The performance of each Security will not depend on the performance of any other Security.
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Underlying Equity
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Call Return Rate
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Starting Price
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Trigger Price
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CUSIP
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ISIN
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Common Stock of American Airlines Group Inc. (AAL)
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11.20% per annum
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$48.665
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$34.066, which is 70% of the Starting Price
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78013D151
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US78013D1515
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Common Stock of Chipotle Mexican Grill, Inc. (CMG)
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8.80% per annum
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$632.37
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$537.51, which is 85% of the Starting Price
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78013D169
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US78013D1697
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Common Stock of PulteGroup, Inc. (PHM)
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10.50% per annum
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$19.89
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$15.91, which is 80% of the Starting Price
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78013D177
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US78013D1770
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Price to Public (1)
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Fees and Commissions
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Proceeds to Us
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Offering of the Securities
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Total
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Per Security
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Total
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Per Security
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Total
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Per Security
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Common Stock of American Airlines Group Inc. (AAL)
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$10,404,420.00
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$10.00
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$156,066.30
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$0.15
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$10,248,353.70
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$9.85
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Common Stock of Chipotle Mexican Grill, Inc. (CMG)
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$253,370.00
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$10.00
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$3,800.55
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$0.15
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$249,569.45
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$9.85
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Common Stock of PulteGroup, Inc. (PHM)
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$1,082,750.00
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$10.00
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$16,241.25
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$0.15
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$1,066,508.75
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$9.85
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UBS Financial Services Inc.
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RBC Capital Markets, LLC
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Additional Information About Royal Bank of Canada and the Securities
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¨
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Product prospectus supplement no. UBS-TAOS-2 dated May 13, 2015:
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¨
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Prospectus supplement dated April 30, 2015:
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¨
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Prospectus dated April 30, 2015:
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Investor Suitability
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The Securities may be suitable for you if, among other considerations:
¨ You fully understand the risks inherent in an investment in the Securities, including the risk of loss of your entire initial investment.
¨ You can tolerate the loss of all or a substantial portion of your investment and are willing to make an investment that may have similar downside market risk as the Underlying Equity.
¨ You are willing to accept the risks of investing in equities in general and in the applicable Underlying Equity in particular.
¨ You believe the applicable Underlying Equity will close at or above the Starting Price on any one of the specified Observation Dates, including the final Observation Date, or you believe the Underlying Equity will not close below the applicable Trigger Price on the final Observation Date.
¨ You can tolerate fluctuations in the price of the Securities prior to maturity that may be similar to or exceed the downside price fluctuations of the Underlying Equity.
¨ You are willing to hold securities that will be called on the earliest Observation Date on which the Underlying Equity closes at or above the Starting Price, or you are otherwise willing to hold such securities to maturity.
¨ You are willing to make an investment whose return is limited to the applicable Call Return, regardless of the potential appreciation of the Underlying Equity, which could be significant, or, if the Securities have not been called, to the Contingent Absolute Return (as limited by the Trigger Price).
¨ You are willing to invest in the Securities based on the applicable Call Return Rate indicated on the cover page of this pricing supplement.
¨ You are willing to invest in Securities for which there may be little or no secondary market and you accept that the secondary market will depend in large part on the price, if any, at which RBC Capital Markets, LLC, which we refer to as “RBCCM,” is willing to purchase the Securities.
¨ You do not seek current income from this investment and are willing to forgo any dividends paid on the Underlying Equity.
¨ You are willing to assume our credit risk for all payments under the Securities, and understand that if we default on our obligations, you may not receive any amounts due to you, including any repayment of principal.
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The Securities may not be suitable for you if, among other considerations:
¨ You do not fully understand the risks inherent in an investment in the Securities, including the risk of loss of your entire initial investment.
¨ You cannot tolerate the loss of all or a substantial portion of your investment, and you are not willing to make an investment that may have similar downside market risk as the Underlying Equity.
¨ You are unwilling to accept the risks of investing in equities in general or in the applicable Underlying Equity in particular.
¨ You do not believe the applicable Underlying Equity will close at or above the Starting Price on any one of the specified Observation Dates, including the final Observation Date, or you believe the applicable Underlying Equity will close below the applicable Trigger Price on the final Observation Date exposing you to the full downside performance of the Underlying Equity.
¨ You seek an investment that is designed to provide a full return of principal at maturity.
¨ You seek an investment that participates in the full performance of the Underlying Equity and whose positive return is not limited to the applicable Call Return, or, if the Securities have not been called, to the Contingent Absolute Return (as limited by the Trigger Price).
¨ You are unwilling to invest in the Securities based on the applicable Call Return Rate indicated on the cover page of this pricing supplement.
¨ You are unable or unwilling to hold securities that will be called on the earliest Observation Date on which the Underlying Equity closes at or above the Starting Price, or you are otherwise unable or unwilling to hold such securities to maturity.
¨ You seek an investment for which there will be an active secondary market.
¨ You seek current income from your investment, or prefer to receive any dividends paid on the Underlying Equity.
¨ You prefer the lower risk, and therefore accept the potentially lower returns, of conventional fixed income investments with comparable maturities and credit ratings.
¨ You cannot tolerate fluctuations in the price of the Securities prior to maturity that may be similar to or exceed the downside price fluctuations of the Underlying Equity.
¨ You are not willing to assume our credit risk for all payments under the Securities, including any repayment of principal.
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Final Terms of the Securities1
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Issuer:
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Royal Bank of Canada
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Principal Amount per
Security: |
$10 per Security (subject to a minimum purchase of 100 Securities or $1,000)
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Term:
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Approximately 12 months, unless called earlier
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Underlying Equity:2
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The common equity securities of a specific company, as set forth on the cover page of this pricing supplement.
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Call Feature:
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The Securities will be called if the Closing Price of the applicable Underlying Equity on any Observation Date is at or above its Starting Price. If the Securities are called, we will pay you on the applicable Call Settlement Date a cash payment per $10 principal amount of each Security equal to the Call Price for the applicable Observation Date.
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Observation Dates:3
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The first Observation Date will occur on August 17, 2015; Observation Dates will occur quarterly thereafter on November 16, 2015, February 16, 2016 and May 17, 2016 (the “final Observation Date”).
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Call Settlement Dates:
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Two (2) business days following the applicable Observation Date, except that the Call Settlement Date for the final Observation Date is the Maturity Date.
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Call Price:
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The Call Price will be calculated based on the following formula:
$10 + ($10 x Call Return)
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Call Return / Call Return
Rate: |
The Call Price will be based upon the applicable Call Return. The Call Return increases the longer the Securities are outstanding and will be based on the Call Return Rate of (i) 11.20% per annum for the Securities linked to the common stock of American Airlines Group Inc., (ii) 8.80% per annum for the Securities linked to the common stock of Chipotle Mexican Grill, Inc. and (iii) 10.50% per annum for the Securities linked to the common stock of PulteGroup, Inc.
The Call Return will be a fixed amount based upon equal quarterly installments at the Call Return Rate, which is a per annum rate. The table below sets forth each Observation Date, each Call Settlement Date and the corresponding Call Price for each Security.
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Observation Date3
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Call Settlement
Dates
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AAL
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CMG
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PHM
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August 17, 2015
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August 19, 2015
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$10.2800
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$10.2200
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$10.2625
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November 16, 2015
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November 18, 2015
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$10.5600
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$10.4400
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$10.5250
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February 16, 2016
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February 18, 2016
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$10.8400
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$10.6600
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$10.7875
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May 17, 2016
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May 23, 2016
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$11.1200
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$10.8800
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$11.0500
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Payment at Maturity
(per Security): |
If the Securities are not called and the Final Price of the applicable Underlying Equity is above or equal to the Trigger Price on the final Observation Date, we will pay you a cash payment on the Maturity Date per Security equal to:
$10 × (1 + Contingent Absolute Return)
If the Securities are not called and the Final Price is below the Trigger Price on the final Observation Date, then the Contingent Absolute Return will not apply, and we will pay you a cash payment on the Maturity Date that is less than your principal amount, if anything, resulting in a loss that is proportionate to the negative Underlying Return, equal to:
$10 × (1 + Underlying Return)
Accordingly, you may lose all or a substantial portion of your principal at maturity, depending on how much the Underlying Equity declines.
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Underlying Return:
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Final Price - Starting Price
Starting Price
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Trigger Price:
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A percentage of the Starting Price of the Underlying Equity, as specified on the cover page of this pricing supplement.
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Contingent Absolute Return:
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The absolute value of the Underlying Return. For example, if the Underlying Return is -5%, the Contingent Absolute Return will equal 5%.
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Starting Price:
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The closing price of the applicable Underlying Equity on the Trade Date as specified on the cover page of this pricing supplement.
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Final Price:
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The closing price of the applicable Underlying Equity on the final Observation Date.
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Closing Price:
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On any trading day, the last reported sale price of the Underlying Equity on the principal national securities exchange on which it is listed for trading, as determined by the calculation agent.
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Investment Timeline
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Trade
Date:
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The closing price of the applicable Underlying Equity (the Starting Price) was observed, the Trigger Price was determined and the Call Return Rate was set.
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Quarterly:
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The Securities will be called if the closing price of the applicable Underlying Equity on any Observation Date is equal to or greater than the Starting Price.
If the Securities are called, we will pay the Call Price for the applicable Observation Date, equal to the principal amount plus the applicable Call Return.
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Maturity
Date: |
The Final Price of the applicable Underlying Equity is observed on the final Observation Date.
If the Securities have not been called and the Final Price is equal to or greater than the Trigger Price, we will repay an amount in cash equal to:
$10 × (1 + Contingent Absolute Return)
If the Securities have not been called and the Final Price is less than the Trigger Price, then the Contingent Absolute Return will not apply, and we will repay less than the principal amount, if anything, resulting in a loss proportionate to the decline of the Underlying Equity, equal to a return of:
$10.00 × (1 + Underlying Return) per Security
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Key Risks
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An investment in the Securities involves significant risks. Investing in the Securities is not equivalent to investing directly in the Underlying Equity. These risks are explained in more detail in the “Risk Factors” section of the accompanying product prospectus supplement no. UBS-TAOS-2. We also urge you to consult your investment, legal, tax, accounting and other advisors before investing in the Securities.
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¨
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You May Lose Some or All of Your Principal: The Securities differ from ordinary debt securities in that we will not necessarily pay the full principal amount at maturity. The return on the Securities depends on whether the Underlying Equity closes at or above the Starting Price on an Observation Date, and if the Securities are not called, whether the Final Price of the Underlying Equity is greater than or equal to the Trigger Price. If the Securities are not called, we will only you the principal amount of your Securities, plus the Contingent Absolute Return, if the Final Price of the Underlying Equity is greater than or equal to the Trigger Price, and will only make such payment at maturity. If the Securities are not called and the Final Price is less than the Trigger Price, the Contingent Absolute Return will not apply and you will lose some or all of your principal amount in an amount proportionate to the negative Underlying Return.
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¨
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The Call Feature and the Trigger Price Limit Your Potential Return: The return potential of the Securities if the Securities are called as of any Observation Date is limited to the applicable Call Return, regardless of the appreciation of the Underlying Equity, which may be significant. Therefore, you may receive a lower payment if the Securities are automatically called or at maturity, as the case may be, than you would have if you had invested directly in the Underlying Equity. In addition, because the Call Return increases the longer the Securities are outstanding, the Call Price payable on the first Observation Date is less than the Call Price payable on later Observation Dates. As the Securities could be called as early as the first Observation Date, the total return on the Securities could be minimal.
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¨
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No Periodic Interest Payments: We will not pay any interest with respect to the Securities.
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¨
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Reinvestment Risk: If your Securities are called early, the holding period over which you would receive the applicable per annum Call Return Rate could be as little as three months. There is no guarantee that you would be able to reinvest the proceeds from an investment in the Securities in a comparable investment with a similar level of risk in the event the Securities are called prior to the Maturity Date.
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¨
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Contingent Absolute Return Applies Only at Maturity: You should be willing to hold your Securities to maturity. If you are able to sell your Securities prior to maturity in the secondary market, if any, you may have to sell your Securities at a loss relative to your initial investment, even if the price of the Underlying Equity is above the Trigger Price. If at maturity the Securities have not been called, we will repay you the full principal amount per Security plus the Contingent Absolute Return, unless the price of the applicable Underlying Equity closes below the applicable Trigger Price on the final Observation Date. Under these circumstances, the Contingent Absolute Return will not apply and we will repay less than the principal amount, if anything, resulting in a loss that is proportionate to the decline in the price of the applicable Underlying Equity from the Trade Date to the final Observation Date. The Contingent Absolute Return and any contingent repayment of principal are based on whether the applicable Final Price is below the applicable Trigger Price and apply only if you hold your Securities to maturity.
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¨
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The Call Return Rate and the Probability that the Applicable Final Price Will Fall Below the Applicable Trigger Price on the Final Observation Date Will Reflect in Part the Volatility of the Underlying Equity: “Volatility” refers to the frequency and magnitude of changes in the price of the applicable Underlying Equity. The greater the volatility of the applicable Underlying Equity, the more likely it is that the price of that Underlying Equity could close below the Trigger Price on the final Observation Date. This risk will generally be reflected in a higher Call Return Rate for the Securities than the return payable on our conventional debt securities with a comparable term. However, while the Call Return Rate was set on the Trade Date, the Underlying Equity’s volatility can change significantly over the term of the Securities, and may increase. The price of the Underlying Equity could fall sharply as of the final Observation Date, which could result in a significant loss of your initial investment.
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¨
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Credit Risk of Royal Bank of Canada: The Securities are our unsubordinated and unsecured debt obligations and are not, either directly or indirectly, an obligation of any third party. Any payment to be made on the Securities, including payments in respect of an automatic call or any repayment of principal, depends on our ability to satisfy our obligations as they come due. As a result, our actual and perceived creditworthiness may affect the market value of the Securities and, in the event we were to default on our obligations, you may not receive any amounts owed to you under the terms of the Securities and you could lose your entire investment.
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¨
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Single Stock Risk: The price of the Underlying Equity can rise or fall sharply due to factors specific to that Underlying Equity and its issuer, such as stock price volatility, earnings, financial conditions, corporate, industry and regulatory developments, management changes and decisions and other events, as well as general market factors, such as general stock market volatility and levels, interest rates and economic and political conditions. You, as an investor in the Securities, should make your own investigation into the issuer of the Underlying Equity and the Underlying Equity for your Securities. We urge you to review financial and other information filed periodically by the applicable issuer with the SEC.
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¨
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The Common Stock of American Airlines Group Inc. Has Limited Historical Information: Prior to December 9, 2013, American Airlines Group Inc.’s predecessor’s common stock traded under the symbol “AMR” until the company filed for bankruptcy on November 29, 2011. From that date until December 9, 2013, the company traded on the over-the-counter market under the symbol “AAMRQ.” On December 9, 2013, the company and its subsidiaries consummated their Chapter 11 reorganization and merged with US Airways Group, Inc. Immediately following the emergence from bankruptcy and the merger, the company changed its name to American Airlines Group Inc.
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¨
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Dividend Payments or Voting Rights: As a holder of the Securities, you will not have voting rights, rights to receive cash dividends or other distributions, or any other rights that holders of the Underlying Equity would have.
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¨
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Owning the Securities Is Not the Same as Owning the Underlying Equity: The return on your Securities may not reflect the return you would realize if you actually owned the Underlying Equity. For instance, you will not receive or be entitled to receive any dividend payments or other distributions over the term of the Securities. Furthermore, the Underlying Equity may appreciate substantially during the term of the Securities, while your potential return, if called, will be limited to the applicable Call Return.
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¨
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There Is No Affiliation Between the Underlying Equity Issuer and RBCCM, and RBCCM Is Not Responsible for any Disclosure by the Underlying Equity Issuer: We are not affiliated with the Underlying Equity issuer. However, we and our affiliates may currently, or from time to time in the future engage in business with the Underlying Equity issuer. Nevertheless, neither we nor our affiliates assume any responsibility for the accuracy or the completeness of any information about the Underlying Equity and the Underlying Equity issuer. You, as an investor in the Securities, should make your own investigation into the Underlying Equity and the Underlying Equity issuer for your Securities. The Underlying Equity issuer is not involved in this offering and has no obligation of any sort with respect to your Securities. The Underlying Equity issuer has no obligation to take your interests into consideration for any reason, including when taking any corporate actions that might affect the value of your Securities.
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¨
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Lack of Liquidity: The Securities will not be listed on any securities exchange. RBCCM intends to offer to purchase the Securities in the secondary market, but is not required to do so. Even if there is a secondary market, it may not provide enough liquidity to allow you to trade or sell the Securities easily. Because other dealers are not likely to make a secondary market for the Securities, the price at which you may be able to trade your Securities is likely to depend on the price, if any, at which RBCCM is willing to buy the Securities.
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¨
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The Initial Estimated Value of the Securities Is Less than the Price to the Public: The initial estimated value for each of the Securities that is set forth on the cover page of this document, which is less than the public offering price you pay for the Securities, does not represent a minimum price at which we, RBCCM or any of our other affiliates would be willing to purchase the Securities in any secondary market (if any exists) at any time. If you attempt to sell the Securities prior to maturity, their market value may be lower than the price you paid for them and the initial estimated value. This is due to, among other things, changes in the price of the applicable Underlying Equity, the borrowing rate we pay to issue securities of this kind, and the inclusion in the price to the public of the underwriting discount, and our estimated profit and the costs relating to our hedging of the Securities. These factors, together with various credit, market and economic factors over the term of the Securities, are expected to reduce the price at which you may be able to sell the Securities in any secondary market and will affect the value of the Securities in complex and unpredictable ways. Assuming no change in market conditions or any other relevant factors, the price, if any, at which you may be able to sell your Securities prior to maturity may be less than the price to public, as any such sale price would not be expected to include the underwriting discount and our estimated profit and the costs relating to our hedging of the Securities. In addition, any price at which you may sell the Securities is likely to reflect customary bid-ask spreads for similar trades. In addition to bid-ask spreads, the value of the Securities determined for any secondary market price is expected to be based on a secondary market rate rather than the internal borrowing rate used to price the Securities and determine the initial estimated value. As a result, any secondary price will be less than if the internal borrowing rate was used. The Securities are not designed to be short-term trading instruments. Accordingly, you should be able and willing to hold your Securities to maturity.
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¨
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Our Initial Estimated Value of the Securities Is an Estimate Only, Calculated as of the Time the Terms of the Securities Are Set: The initial estimated value of each of the Securities is based on the value of our obligation to make the payments on the Securities, together with the mid-market value of the derivative embedded in the terms of the Securities. See “Structuring the Securities” below. Our estimate is based on a variety of assumptions, including our credit spreads, expectations as to dividends, interest rates and volatility, and the expected term of the Securities. These assumptions are based on certain forecasts about future events, which may prove to be incorrect. Other entities may value the Securities or similar securities at a price that is significantly different than we do.
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¨
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Potential Conflicts: We and our affiliates play a variety of roles in connection with the issuance of the Securities, including hedging our obligations under the Securities. In performing these duties, the economic interests of the calculation agent and other affiliates of ours are potentially adverse to your interests as an investor in the Securities.
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¨
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Potentially Inconsistent Research, Opinions or Recommendations by RBCCM, UBS or Their Affiliates: RBCCM, UBS or their affiliates may publish research, express opinions or provide recommendations as to the Underlying Equity that are inconsistent with investing in or holding the Securities, and which may be revised at any time. Any such research, opinions or recommendations could affect the value of the Underlying Equity, and therefore the market value of the Securities.
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¨
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Uncertain Tax Treatment: Significant aspects of the tax treatment of an investment in the Securities are uncertain. You should consult your tax adviser about your tax situation.
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¨
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Potential Royal Bank of Canada and UBS Impact on Price: Trading or transactions by us, UBS or our respective affiliates in the Underlying Equity, or in futures, options, exchange-traded funds or other derivative products on the Underlying Equity may adversely affect the market value of the Underlying Equity, the closing price of the Underlying Equity, and, therefore, the market value of the Securities.
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¨
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Many Economic and Market Factors Will Impact the Value of the Securities: In addition to the closing price of the Underlying Equity on any trading day, the value of the Securities will be affected by a number of economic and market factors that may either offset or magnify each other, including:
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|
¨
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the actual and expected volatility of the price of the Underlying Equity;
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|
¨
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the time to maturity of the Securities;
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¨
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the dividend rate on the Underlying Equity;
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|
¨
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interest and yield rates in the market generally;
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¨
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a variety of economic, financial, political, regulatory or judicial events;
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¨
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the occurrence of certain events to the Underlying Equity that may or may not require an adjustment to the terms of the Securities; and
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¨
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our creditworthiness, including actual or anticipated downgrades in our credit ratings.
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¨
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The Anti-Dilution Protection for the Underlying Equity Is Limited: The calculation agent will make adjustments to the Starting Price and the Trigger Price for certain events affecting the shares of the applicable Underlying Equity. However, the calculation agent will not be required to make an adjustment in response to all events that could affect the Underlying Equity. If an event occurs that does not require the calculation agent to make an adjustment, the value of the Securities may be materially and adversely affected.
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Hypothetical Examples
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Principal Amount:
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$10
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Term:
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12 months
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Hypothetical Starting Price:
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$100.00
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Hypothetical Call Return Rate:
|
10.00% per annum (or 2.50% per quarterly period)
|
Observation Dates:
|
Observation Dates will occur quarterly as set forth under “Final Terms” in this pricing supplement.
|
Hypothetical Trigger Price:
|
$75.00 (which is 75% of the Starting Price)
|
Closing Price at first Observation Date:
|
$105.00 (at or above Starting Price, Securities are called)
|
Call Price (per $10.00):
|
$10.25
|
Closing Price at first Observation Date:
|
$95.00 (below Starting Price, Securities NOT called)
|
Closing Price at second Observation Date:
|
$90.00 (below Starting Price, Securities NOT called)
|
Closing Price at third Observation Date:
|
$85.00 (below Starting Price, Securities NOT called)
|
Closing Price at final Observation Date:
|
$105.00 (at or above Starting Price, Securities are called)
|
Call Price (per $10.00):
|
$11.00
|
Closing Price at first Observation Date:
|
$95.00 (below Starting Price, Securities NOT called)
|
Closing Price at second Observation Date:
|
$90.00 (below Starting Price, Securities NOT called)
|
Closing Price at third Observation Date:
|
$85.00 (below Starting Price, Securities NOT called)
|
Closing Price at final Observation Date:
|
$80.00 (below Starting Price, but above Trigger Price, Securities NOT called)
|
Payment at Maturity (per $10.00):
|
$10.00 × (1 + Contingent Absolute Return)
$10.00 × (1 + 20%)
$12.00
|
Closing Price at first Observation Date:
|
$95.00 (below Starting Price, Securities NOT called)
|
Closing Price at second Observation Date:
|
$90.00 (below Starting Price, Securities NOT called)
|
Closing Price at third Observation Date:
|
$85.00 (below Starting Price, Securities NOT called)
|
Closing Price at final Observation Date:
|
$50.00 (below Starting Price and Trigger Price, Securities NOT called)
|
Payment at Maturity (per $10):
|
$10.00 × (1 + Underlying Return)
$10.00 × (1 - 50%)
$5.00
|
What Are the Tax Consequences of the Securities?
|
Information About the Underlying Equities
|
American Airlines Group Inc.
|
According to publicly available information, American Airlines Group Inc. operates an airline that provides scheduled passenger, freight, and mail service throughout North America, the Caribbean, Latin America, Europe, and the Pacific. The company also provides connecting service throughout the United States, Canada, and the Caribbean.
Information filed by the company with the SEC under the Exchange Act can be located by reference to its SEC CIK number: 0000006201. The company’s common stock is listed on the NASDAQ Global Select Market (“NASDAQ”) under the ticker symbol “AAL.”
|
Quarter Begin
|
Quarter End
|
Quarterly Closing High
|
Quarterly Closing Low
|
Quarterly Period-End Close
|
1/04/2010
|
3/31/2010
|
$10.16
|
$6.92
|
$9.11
|
4/01/2010
|
6/30/2010
|
$9.10
|
$6.53
|
$6.78
|
7/01/2010
|
9/30/2010
|
$7.44
|
$5.99
|
$6.27
|
10/01/2010
|
12/31/2010
|
$8.87
|
$5.96
|
$7.79
|
1/03/2011
|
3/31/2011
|
$8.85
|
$6.14
|
$6.46
|
4/01/2011
|
6/30/2011
|
$6.73
|
$5.40
|
$5.40
|
7/01/2011
|
9/30/2011
|
$5.52
|
$2.96
|
$2.96
|
10/03/2011
|
12/30/2011
|
$2.96
|
$0.26
|
$0.35
|
1/03/2012
|
3/30/2012
|
$0.71
|
$0.24
|
$0.49
|
4/02/2012
|
6/29/2012
|
$0.59
|
$0.44
|
$0.55
|
7/02/2012
|
9/28/2012
|
$0.54
|
$0.36
|
$0.37
|
10/01/2012
|
12/31/2012
|
$0.95
|
$0.36
|
$0.80
|
1/02/2013
|
3/28/2013
|
$4.38
|
$0.84
|
$4.15
|
4/01/2013
|
6/28/2013
|
$6.85
|
$3.40
|
$4.03
|
7/01/2013
|
9/30/2013
|
$6.05
|
$2.57
|
$4.11
|
10/01/2013
|
12/9/2013
|
$12.25
|
$4.45
|
$4.11
|
Quarter Begin
|
Quarter End
|
Quarterly Closing High
|
Quarterly Closing Low
|
Quarterly Period-End Close
|
12/09/2013
|
12/31/2013
|
$26.61
|
$24.60
|
$25.25
|
1/02/2014
|
3/31/2014
|
$39.02
|
$25.36
|
$36.60
|
4/01/2014
|
6/30/2014
|
$44.55
|
$33.37
|
$42.96
|
7/01/2014
|
9/30/2014
|
$43.86
|
$35.03
|
$35.48
|
10/01/2014
|
12/31/2014
|
$53.63
|
$28.58
|
$53.63
|
1/02/2015
|
3/31/2015
|
$55.76
|
$46.53
|
$52.78
|
4/01/2015
|
5/15/2015*
|
$52.71
|
$47.01
|
$48.665
|
Chipotle Mexican Grill, Inc.
|
Quarter Begin
|
Quarter End
|
Quarterly Closing High
|
Quarterly Closing Low
|
Quarterly Period-End
Close |
1/04/2010
|
3/31/2010
|
$115.27
|
$86.43
|
$112.67
|
4/01/2010
|
6/30/2010
|
$152.92
|
$114.48
|
$136.81
|
7/01/2010
|
9/30/2010
|
$176.67
|
$129.60
|
$172.00
|
10/01/2010
|
12/31/2010
|
$258.82
|
$172.96
|
$212.66
|
1/03/2011
|
3/31/2011
|
$272.95
|
$217.67
|
$272.37
|
4/01/2011
|
6/30/2011
|
$308.19
|
$260.41
|
$308.19
|
7/01/2011
|
9/30/2011
|
$336.14
|
$273.20
|
$302.95
|
10/03/2011
|
12/30/2011
|
$343.52
|
$292.70
|
$337.74
|
1/03/2012
|
3/30/2012
|
$424.70
|
$339.74
|
$418.00
|
4/02/2012
|
6/29/2012
|
$440.40
|
$376.95
|
$379.95
|
7/02/2012
|
9/28/2012
|
$403.86
|
$280.67
|
$317.54
|
10/01/2012
|
12/31/2012
|
$316.13
|
$236.24
|
$297.46
|
1/02/2013
|
3/28/2013
|
$329.24
|
$280.94
|
$325.87
|
4/01/2013
|
6/28/2013
|
$377.43
|
$321.06
|
$364.35
|
7/01/2013
|
9/30/2013
|
$428.70
|
$363.74
|
$428.70
|
10/01/2013
|
12/31/2013
|
$546.97
|
$425.67
|
$532.78
|
1/02/2014
|
3/31/2014
|
$611.58
|
$484.50
|
$568.05
|
4/01/2014
|
6/30/2014
|
$600.32
|
$476.28
|
$592.51
|
7/01/2014
|
9/30/2014
|
$684.83
|
$581.65
|
$666.59
|
10/01/2014
|
12/31/2014
|
$692.69
|
$607.55
|
$684.51
|
1/02/2015
|
3/31/2015
|
$726.63
|
$648.01
|
$650.54
|
4/01/2015
|
5/15/2015*
|
$692.52
|
$621.34
|
$632.37
|
PulteGroup, Inc.
|
Quarter Begin
|
Quarter End
|
Quarterly Closing High
|
Quarterly Closing Low
|
Quarterly Period-End
Close |
1/04/2010
|
3/31/2010
|
$11.74
|
$10.22
|
$11.25
|
4/01/2010
|
6/30/2010
|
$13.39
|
$8.28
|
$8.28
|
7/01/2010
|
9/30/2010
|
$9.07
|
$7.84
|
$8.76
|
10/01/2010
|
12/31/2010
|
$8.73
|
$6.21
|
$7.52
|
1/03/2011
|
3/31/2011
|
$8.69
|
$6.54
|
$7.40
|
4/01/2011
|
6/30/2011
|
$8.44
|
$6.93
|
$7.66
|
7/01/2011
|
9/30/2011
|
$7.84
|
$3.61
|
$3.95
|
10/03/2011
|
12/30/2011
|
$6.48
|
$3.54
|
$6.31
|
1/03/2012
|
3/30/2012
|
$9.61
|
$6.52
|
$8.85
|
4/02/2012
|
6/29/2012
|
$10.70
|
$7.69
|
$10.70
|
7/02/2012
|
9/28/2012
|
$16.98
|
$10.02
|
$15.50
|
10/01/2012
|
12/31/2012
|
$18.61
|
$15.24
|
$18.16
|
1/02/2013
|
3/28/2013
|
$21.67
|
$18.02
|
$20.24
|
4/01/2013
|
6/28/2013
|
$24.25
|
$17.54
|
$18.97
|
7/01/2013
|
9/30/2013
|
$20.39
|
$15.11
|
$16.50
|
10/01/2013
|
12/31/2013
|
$20.37
|
$15.54
|
$20.37
|
1/02/2014
|
3/31/2014
|
$21.29
|
$18.57
|
$19.19
|
4/01/2014
|
6/30/2014
|
$20.23
|
$18.16
|
$20.16
|
7/01/2014
|
9/30/2014
|
$20.50
|
$17.54
|
$17.66
|
10/01/2014
|
12/31/2014
|
$21.72
|
$16.66
|
$21.46
|
1/02/2015
|
3/31/2015
|
$23.24
|
$20.56
|
$22.23
|
4/01/2015
|
5/15/2015*
|
$22.78
|
$19.30
|
$19.89
|
Supplemental Plan of Distribution (Conflicts of Interest)
|
Structuring the Securities
|
Terms Incorporated in Master Note
|
Validity of the Securities
|
1 Year Royal Bank of Canada Chart |
1 Month Royal Bank of Canada Chart |
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