RBC to price trigger phoenix callable notes linked to Oil Services ETF

By Marisa Wong

Madison, Wis., Feb. 17 – Royal Bank of Canada plans to price trigger phoenix issuer callable notes due Feb. 23, 2018 linked to the Market Vectors Oil Services exchange-traded fund, according to an FWP filing with the Securities and Exchange Commission.

If the ETF’s shares close 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 6.5% to 7% per year. Otherwise, no coupon will be paid that quarter. The exact contingent coupon rate will be set at pricing.

If the ETF finishes 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.

The notes are callable at par plus any accrued interest on any coupon payment date beginning Feb. 25, 2016.

RBC Capital Markets, LLC is the underwriter.

The notes are expected to price Feb. 20 and settle Feb. 25.

The Cusip number is 78012KBS5.

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