RBC to price trigger phoenix autocallables linked to KB Home

By Angela McDaniels

Tacoma, Wash., July 16 - Royal Bank of Canada plans to price trigger phoenix autocallable notes due July 31, 2014 linked to the common stock of KB Home, according to an FWP filing with the Securities and Exchange Commission.

If KB Home stock closes at or above the trigger price - 65% of the initial share price - on a quarterly observation date, the issuer will pay a contingent coupon for that quarter at the rate of 11.5% to 14.5% per year. Otherwise, no coupon will be paid that quarter. The exact contingent coupon rate will be set at pricing.

If KB Home shares close at or above the initial price on a quarterly observation date, the notes will be called at par plus the contingent coupon.

If the notes are not called and KB Home shares finish at or above the trigger price, the payout at maturity will be par plus the contingent coupon. Otherwise, investors will be exposed to the share price decline from the initial price.

RBC Capital Markets, LLC is the underwriter.

The notes will price July 29 and settle July 31.

The Cusip number is 78008S6E1.

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