RBC increases call premium for autocallables tied to SPDR S&P Metals

By Angela McDaniels

Tacoma, Wash., Aug. 25 - Royal Bank of Canada increased the call premium for its upcoming autocallable access securities with fixed percentage buffered downside due Sept. 3, 2013 linked to the SPDR S&P Metals & Mining exchange-traded fund, according to a 424B2 filing with the Securities and Exchange Commission.

Wells Fargo Securities, LLC is the agent.

The notes will be automatically called at par plus a premium of 10% to 12% per year if the fund's closing share price is greater than or equal to the initial share price on Sept. 4, 2012, March 1, 2013 or Aug. 26, 2013. The exact call premium will be determined at pricing.

Before the change, the call premium was expected to be 8% to 10% per year.

If the notes are not called and the fund's final share price is at least 90% of the initial level, the payout at maturity will be par. Otherwise, investors will lose 1% for every 1% that the fund declines beyond 10%.

The notes (Cusip: 78008TMP6) will price in August and settle in September.

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