RBC plans trigger phoenix autocallables linked to biotech, energy ETFs

By Angela McDaniels

Tacoma, Wash., Feb. 23 – Royal Bank of Canada plans to price trigger phoenix autocallable notes due March 1, 2017 linked to the lesser performing of the SPDR S&P Biotech exchange-traded fund and the Energy Select Sector SPDR Fund, according to an FWP filing with the Securities and Exchange Commission.

Each quarter, the notes will pay a contingent coupon at an annual rate of 15.15% to 16.05% if each fund closes at or above its trigger level, 60% of its initial share price, on the observation date for that quarter. The exact contingent coupon rate will be set at pricing.

The notes will be called at par if each fund closes at or above its initial share price on any quarterly call observation date.

If the notes are not called and each fund finishes at or above its trigger level, the payout at maturity will be par plus the final contingent coupon. Otherwise, investors will be exposed to the decline of the lesser-performing fund.

RBC Capital Markets LLC is the agent.

The notes will price Feb. 24.

The Cusip number is 78012KLP0.

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