RBC plans to price phoenix autocallable notes linked to Actavis

By Toni Weeks

San Luis Obispo, Calif., Aug. 19 – Royal Bank of Canada plans to price 0% phoenix autocallable notes due Sept. 10, 2015 linked to the common stock of Actavis plc, according to an FWP filing with the Securities and Exchange Commission.

Each quarter, the notes will pay a contingent coupon at the rate of 11.6% per year if Actavis shares close at or above the trigger price, 80% of the initial share price, on the observation date for that quarter. Otherwise, no coupon will be paid for that quarter.

If the stock closes at or above the initial price on any quarterly observation date other than the final review date, the notes will be called at par plus the contingent coupon.

If the notes are not called and the shares finish at or above the trigger price, the payout at maturity will be par plus the contingent coupon. Otherwise, investors will receive a number of shares equal to $1,000 divided by the initial share price or, at the issuer’s option, the cash value of those shares.

The notes (Cusip: 78010UV61) are expected to price Aug. 22 and settle Aug. 27.

RBC Capital Markets, LLC is the underwriter with J.P. Morgan Securities LLC as placement agent.

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