RBC plans contingent income autocallables linked to GNC Holdings

By Jennifer Chiou

New York, March 5 – Royal Bank of Canada plans to price contingent income autocallable securities due March 17, 2016 linked to the common stock of GNC Holdings, Inc., according to an FWP with the Securities and Exchange Commission.

If GNC Holdings shares close at or above the downside threshold level, 75% of the initial share price, on a quarterly determination date, the notes will pay a contingent payment that quarter at an annualized rate of 9.35%.

The notes will be called at par of $10 plus the contingent coupon if GNC Holdings 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, the payout at maturity will be par plus the final contingent coupon. Otherwise, investors will receive a number of GNC Holdings shares equal to $10 divided by the initial share price or, at the issuer’s option, an amount in cash equal to the value of those shares.

The notes (Cusip: 780082624) will price on March 13 and settle on March 18.

RBC Capital Markets, LLC is the agent with Morgan Stanley Wealth Management as distributor.

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