RBC plans 6.15%-8.15% airbag autocallable yield notes tied to Broadcom

By Devika Patel

Knoxville, Tenn., Dec. 22 – Royal Bank of Canada plans to price airbag autocallable yield notes due Jan. 5, 2018 linked to the common stock of Broadcom Ltd., according to an FWP with the Securities and Exchange Commission.

The interest rate is expected to be 6.15% to 8.15% and will be set at pricing. Interest will be payable monthly.

The notes will be called automatically at par if Broadcom shares close at or above the initial share price on any quarterly observation date after March 28, 2017.

The payout at maturity will be par unless the final share price is less than the conversion price, in which case the payout will be a number of Broadcom shares equal to $1,000 divided by the conversion price. The conversion price will be 87% of the initial share price.

UBS Financial Services Inc. and RBC Capital Markets, LLC are the agents.

The notes (Cusip: 78014E224) will price Dec. 28 and settle Dec. 30.

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