New Issue: RBC prices $3 million of autocallable reverse convertibles on two stocks

By Wendy Van Sickle

Columbus, Ohio, Dec. 14 – Royal Bank of Canada priced $3 million of 8.25% autocallable reverse convertible securities due March 14, 2018 linked to the lesser performing of the common stocks of Oracle Corp. and Merck & Co., Inc., according to a 424B2 filing with the Securities and Exchange Commission.

Interest is payable quarterly.

The notes will be automatically called at par if each stock closes at or above its initial share price on a quarterly call date.

The payout at maturity will be par unless either stock finishes below its 65% barrier price, in which case investors will receive a number of shares of the worse performing stock equal to $1,000 divided by the initial share price or, at the issuer’s option, the cash equivalent.

RBC Capital Markets, LLC is the agent.

Issuer:	Royal Bank of Canada
Issue:	Autocallable reverse convertible securities
Underlying stocks:	Oracle Corp. and Merck & Co., Inc.
Amount:	$3 million
Maturity:	March 14, 2018
Coupon:	8.25%, payable quarterly
Price:	Par
Payout at maturity:	Par unless either stock finishes below barrier, in which case a number of shares of the lesser performing stock equal to $1,000 divided by the initial share price or cash equivalent
Call:	At par if each stock closes at or above initial share price on a quarterly call date
Initial prices:	$40.52 for Oracle, $61.23 for Merck
Barrier prices:	$26.34 for Oracle, $39.80 for Merck, 65% of initial share prices
Pricing date:	Dec. 9
Settlement date:	Dec. 14
Agent:	RBC Capital Markets, LLC
Fees:	0.5%
Cusip:	78012KXL6

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