RBC plans to price trigger phoenix autocallables with memory coupon linked to Las Vegas Sands

By Toni Weeks

San Luis Obispo, Calif., May 16 - Royal Bank of Canada plans to price trigger phoenix autocallable notes with memory coupon due May 26, 2017 linked to the common stock of Las Vegas Sands Corp., according to an FWP filing with the Securities and Exchange Commission.

If Las Vegas Sands stock closes at or above the coupon barrier - 70% of the initial share price - on a quarterly observation date, the issuer will pay a contingent coupon for that quarter at the annual rate of 9.5% plus the memory coupon, which is (i) the number of contingent coupon payments that were not previously paid on their coupon payment dates because the stock price was less than the coupon barrier on the applicable observation date multiplied by (ii) the 9.5% contingent coupon.

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

If the notes are not called and Las Vegas Sands shares finish at or above the 70% trigger price, the payout at maturity will be par plus the contingent coupon. Otherwise, investors will receive a number of shares equal to $1,000 divided by the initial stock price or, at the issuer's option, the cash value of those shares.

The notes (Cusip: 78010UYW1) are expected to price May 23 and settle May 29.

RBC Capital Markets, LLC is the underwriter.

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