RBC plans autocallable securities with buffered downside on Stoxx

By Wendy Van Sickle

Columbus, Ohio, May 5 – Royal Bank of Canada plans to price 0% market-linked securities – autocallable with fixed percentage buffered downside due June 4, 2018 linked to the Euro Stoxx 50 index, according to an FWP filing with the Securities and Exchange Commission.

The notes will be called at par plus a call premium of 7.5% to 9.5% a year if the index closes at or above its initial level on any of three semiannual call dates beginning in June 2017.

The payout at maturity will be par unless the index falls by more than 10% in which case investors will be exposed to losses beyond the 10% buffer.

Wells Fargo Securities, LLC is the agent.

The notes (Cusip: 78012KNU7) will price May 31 and settle June 3.

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