RBC plans trigger phoenix autocallable notes linked to index, fund

By Susanna Moon

Chicago, Feb. 19 - Royal Bank of Canada plans to price trigger phoenix callable optimization securities due Feb. 28, 2019 linked to the Euro Stoxx 50 index and the iShares Emerging Markets exchange-traded fund, according to an FWP filing with the Securities and Exchange Commission.

If each component finishes at or above its coupon barrier, 75% of its initial level, on a quarterly observation date, the notes will pay a contingent coupon at the rate of 8.8% to 10.4% per year, with the exact coupon to be set at pricing.

The payout at maturity will be par plus the coupon unless either component finishes below its 50% trigger level, in which case investors will be fully exposed to any losses of the worse performing component.

The notes will be called at par plus the coupon if either component closes at or above the initial level on any quarterly observation date beginning May 26, 2014.

RBC Capital Markets, LLC is the agent.

The notes will price on Feb. 26 and settle on Feb. 28.

The Cusip number is 78010URE9.

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