RBC plans to price trigger phoenix autocallables on Bank of America

By Devika Patel

Knoxville, Tenn., June 10 – Royal Bank of Canada plans to price trigger phoenix autocallable notes due June 16, 2017 linked to the common stock of Bank of America Corp., according to an FWP filing with the Securities and Exchange Commission.

The notes will pay a contingent quarterly coupon at an annual rate of 10% to 12% if Bank of America stock closes at or above the trigger price, 80% of the initial price, on the observation date for that quarter.

If the shares close at or above the initial price on any quarterly observation date after Sept. 13, 2016, the notes will be called at par of $1,000 plus the contingent coupon.

The payout at maturity will be par plus the contingent coupon unless Bank of America shares finish below the 80% trigger price, in which case investors will receive a number of Bank of America shares equal to the principal divided by the initial share price, or at the company’s option, the cash equivalent.

RBC Capital Markets, LLC is the agent.

The notes (Cusip: 78013GBB0) will price June 13 and settle June 16.

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