RBC to price trigger phoenix autocallables linked to three indexes

By Toni Weeks

San Luis Obispo, Calif., Aug. 19 – Royal Bank of Canada plans to price trigger phoenix autocallable notes due Aug. 27, 2019 linked to the least performing of the Dow Jones industrial average, Russell 2000 index and Euro Stoxx 50 index, according to an FWP filing with the Securities and Exchange Commission.

If each index closes at or above its coupon barrier, 75% of its initial level, on a quarterly observation date, the issuer will pay a contingent coupon for that quarter at the rate of 9% to 9.8% per year. Otherwise, no coupon will be paid that quarter. The exact coupon will be set at pricing.

The notes will be called at par of $10 plus the contingent coupon if each index closes at or above its initial level on any quarterly observation date.

If the notes are not called and each index finishes at or above its 75% coupon barrier level, the payout at maturity will be par plus the contingent coupon. If any index finishes below the 75% barrier, investors will be exposed to the decline of the worst-performing index from its initial level.

The notes (Cusip: 78010UV46) are expected to price Aug. 22 and settle Aug. 27.

RBC Capital Markets, LLC is the agent.

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