RBC plans contingent income autocallables tied to Las Vegas Sands

By Marisa Wong

Madison, Wis., Dec. 17 - Royal Bank of Canada plans to price contingent income autocallable securities due December 2015 with step-down redemption threshold feature linked to Las Vegas Sands Corp. stock, according to a 424B2 filing with the Securities and Exchange Commission.

If Las Vegas Sands stock closes at or above the 75% downside threshold level on a quarterly determination date, the notes will pay a contingent payment of 2.8125% to 3.3125% for that quarter. The exact contingent payment will be set at pricing.

If Las Vegas Sands stock closes at or above its redemption price on any of the first 11 quarterly determination dates, the notes will be redeemed at par plus the contingent payment. The redemption level will be 95% of the initial share price for the first four determination dates, stepping down to 90% for the next four dates and to 85% after that.

If the Las Vegas Sands stock finishes at or above the downside threshold level, the payout at maturity will be par plus the contingent quarterly payment.

Otherwise, investors will receive a number of shares of Las Vegas Sands stock equal to $10 divided by the initial share price or, at the issuer's option, the cash equivalent.

The notes (Cusip: 78008W743) are expected to price on Dec. 21 and settle three days after that.

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

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