RBC plans trigger phoenix autocallables linked to Schlumberger stock

By Marisa Wong

Madison, Wis., July 25 - Royal Bank of Canada plans to price trigger phoenix autocallable optimization securities due July 27, 2012 linked to the common stock of Schlumberger Ltd., according to an FWP filing with the Securities and Exchange Commission.

If Schlumberger stock closes at or above the trigger price - 80% of the initial share price - on a quarterly observation date, the issuer will pay a contingent coupon for that quarter at the rate of 12% to 15% per year. Otherwise, no coupon will be paid that quarter.

If the share price is greater than or equal to the initial price on a quarterly observation date, the notes will be called at par of $10 plus the contingent coupon.

If the notes are not called and Schlumberger shares finish at or above the trigger price, the payout at maturity will be par. Otherwise, investors will be exposed to the share price decline from the initial price.

The notes (Cusip: 78010T795) are expected to price on July 27 and settle on July 29.

UBS Financial Services Inc. and RBC Capital Markets, LLC are the underwriters.

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