RBC plans 8.85%-9.85% airbag autocallable yield notes tied to Splunk

By Jennifer Chiou

New York, May 1 - Royal Bank of Canada plans to price 8.85% to 9.85% airbag autocallable yield optimization notes due May 7, 2015 linked to Splunk Inc. shares, according to an FWP filing with the Securities and Exchange Commission.

Interest will be payable monthly. The exact interest rate will be set at pricing.

The notes will be called at par if Splunk shares close at or above the initial share price on any quarterly observation date.

The payout at maturity will be par unless the final share price is less than the conversion price, in which case the payout will be a number of Splunk shares equal to $1,000 divided by the conversion price. The conversion price will be 65% of the initial share price.

The notes (Cusip: 78011Q329) are expected to price on May 2 and settle on May 7.

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

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