RBC plans to price contingent income autocallables linked to Broadcom

By Angela McDaniels

Tacoma, Wash., April 14 – Royal Bank of Canada plans to price contingent income autocallable securities due April 27, 2017 linked to the ordinary shares of Broadcom Ltd., according to an FWP filing with the Securities and Exchange Commission.

If Broadcom shares close at or above the downside threshold level, 70% of the initial share price, on a quarterly determination date, the notes will pay a contingent payment that quarter at an annualized rate of 11%.

The notes will be called at par of $10 plus the contingent coupon if Broadcom shares close at or above the initial share price on any quarterly determination date other than the final determination date.

If the final share price is greater than or equal to the downside threshold level, the payout at maturity will be par plus the final contingent coupon. Otherwise, investors will lose 1% for every 1% that the final share price is less than the initial share price.

RBC Capital Markets, LLC is the agent. Morgan Stanley Smith Barney LLC is handling distribution.

The notes are expected to price April 22.

The Cusip number is 78014C152.

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