RBC plans six-month contingent income autocallables tied to lululemon

By Susanna Moon

Chicago, Jan. 8 – Royal Bank of Canada plans to price 0% contingent income autocallable securities due July 20, 2016 linked to lululemon athletica Inc. shares, according to an FWP filed with the Securities and Exchange Commission.

The notes will pay a contingent monthly coupon at an annual rate of 18% if the stock closes at or above the coupon barrier level, 75% of the initial share price, on a determination date that month.

The notes will be called at par of $10 plus the contingent coupon if the shares close at or above the initial share price on any of the first five determination dates.

The payout at maturity will be par plus the final contingent coupon unless the stock finishes below the 75% trigger level, in which case investors will be fully exposed to any losses.

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

The notes will price on Jan. 15 and settle on Jan. 21.

The Cusip number is 78013C567.

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