RBC plans one-year contingent income autocallables linked to Twitter

By Susanna Moon

Chicago, Sept. 26 – Royal Bank of Canada plans to price contingent income autocallable securities due October 2015 linked to Twitter, Inc. shares, according to an FWP with the Securities and Exchange Commission.

The notes will pay a contingent quarterly coupon of at least 3.5% if Twitter stock closes at or above the 65% downside threshold level on the determination date for that quarter.

The notes will be called at par plus the contingent coupon if the stock closes at or above its initial level on any of the first three determination dates.

If the notes are not called and Twitter stock finishes at or above the downside threshold level, the payout at maturity will be par plus the contingent payment.

Otherwise, investors will receive a number of shares of Twitter stock equal to $10 divided by the initial share price or, at the issuer’s option, the cash value of those shares.

RBC Capital Markets, LLC is the agent with Morgan Stanley Wealth Management handling distribution.

The notes will price on Oct. 3.

The Cusip number is 78011Y470.

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