RBC to price autocallable contingent coupon barrier notes on Tesla

New York, July 12 – Royal Bank of Canada plans to price autocallable contingent coupon barrier notes due July 25, 2019 linked to the common stock of Tesla Motors, Inc., according to an FWP filing with the Securities and Exchange Commission.

The notes will pay a quarterly coupon at an annual rate of 8.35% to 9.35% if the stock closes at or above its coupon barrier level, 50% of its initial level, on the observation date for that quarter. The exact coupon will be set at pricing.

The notes will be called at par plus the coupon if the stock closes at or above its initial price on any quarterly observation date starting Jan. 22, 2018.

The payout at maturity will be par plus the final coupon unless the stock finishes below the 50% trigger level, in which case investors will lose 1% for each 1% that the stock’s final level is less than its initial level.

RBC Capital Markets, LLC is the agent.

The notes will price on July 21 and settle on July 26.

The Cusip number is 78012K2S5.

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