RBC plans one-year contingent income callable notes linked to indexes

By Susanna Moon

Chicago, Nov. 22 – Royal Bank of Canada plans to price contingent income autocallable securities due Nov. 30, 2017 linked to the worst performing of the Dow Jones industrial average, the Russell 2000 index and the S&P 500 index, according to an FWP filing with the Securities and Exchange Commission.

The notes will pay a contingent monthly coupon at an annualized rate of 7.55% if each index closes at or above the downside threshold level, 75% of the initial level, on a determination date for that month.

The notes will be callable at par on any contingent payment date beginning in February 2017.

The payout at maturity will be par plus the final contingent coupon unless any index finishes below the 75% downside threshold, in which case investors will be fully exposed to any losses of the worst performing index.

RBC Capital Markets, LLC is the agent. Morgan Stanley Smith Barney LLC is handling distribution.

The notes will price on Nov. 25 and settle on Nov. 30.

The Cusip number is 78012KVZ7.

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