RBC plans contingent income autocallables linked to American Airlines

By Wendy Van Sickle

Columbus, Ohio, Feb. 5 – Royal Bank of Canada plans to price contingent income autocallable securities due Feb. 21, 2017 linked to the common stock of American Airlines Group Inc., according to an FWP filed with the Securities and Exchange Commission.

The notes will pay a contingent quarterly coupon at an annual rate of 13.4% if American Airlines shares close at or above their downside threshold, 65% of their initial level, on the determination date for that quarter.

The notes will be called at par of $10 plus the contingent coupon if American Airlines shares close above their initial price on any of the first three quarterly determination dates.

The payout at maturity will be par plus the final contingent coupon, unless the shares close below the downside threshold, in which case investors will be fully exposed to the decline.

The notes will price on Feb. 12 and settle on Feb. 18.

RBC Capital Markets, LLC is the agent, and Morgan Stanley Wealth Management is a distributor.

The Cusip number is 78013C666.

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