RBC plans to price phoenix autocallable notes tied to Bank of America

By Marisa Wong

Madison, Wis., Sept. 23 – Royal Bank of Canada plans to price phoenix autocallable notes due Oct. 15, 2015 linked to the common stock of Bank of America Corp., according to an FWP filing with the Securities and Exchange Commission.

Each quarter, the notes will pay a contingent coupon at the rate of 10.2% per year if Bank of America shares close at or above the coupon barrier price, 85% of the initial share price, on the observation date for that quarter. Otherwise, no coupon will be paid for that quarter.

If the stock closes at or above the initial price on any quarterly observation date other than the final review date, the notes will be called at par plus the contingent coupon.

If the notes are not called and the shares finish at or above the 85% trigger price, the payout at maturity will be par plus the contingent coupon. Otherwise, investors will be exposed to the decline in the stock price from the initial price to the final price.

The final stock price will be the average of the closing share prices on the five trading days ending Oct. 15, 2015.

RBC Capital Markets, LLC is the underwriter with J.P. Morgan Securities LLC as placement agent.

The notes are expected to price Sept. 26 and settle Oct. 1.

The Cusip number is 78010U3E5.

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