RBC plans one-year contingent income autocallable notes tied to lululemon

By Susanna Moon

Chicago, Sept. 20 - Royal Bank of Canada plans to price contingent income autocallable securities due October 2014 linked to lululemon athletica inc. shares, according to an FWP filing with the Securities and Exchange Commission.

The notes will pay a contingent quarterly coupon of 2.75% if lululemon stock closes at or above the downside threshold level, 70% of the initial share price, on a determination date for that quarter.

The notes will be redeemed at par of $10 plus the contingent coupon if the stock closes at or above the initial share price on any of the first three quarterly determination dates.

If the notes are not called and the final share price is greater than or equal to the downside threshold level, the payout at maturity will be par plus the contingent coupon.

Otherwise, the payout will be a number of lululemon shares equal to $10 divided by the initial share price or, at the issuer's option, a cash amount equal to the value of those shares.

RBC Capital Markets, LLC is the agent with Morgan Stanley Wealth Management handling distribution.

The notes will price on Sept. 27 and settle three business days later.

The Cusip number is 78009Q497.

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