RBC plans contingent coupon autocallables linked to SPDR S&P Biotech

By Angela McDaniels

Tacoma, Wash., Dec. 16 – Royal Bank of Canada plans to price autocallable contingent coupon barrier notes due Dec. 27, 2017 linked to the SPDR S&P Biotech exchange-traded fund, according to an FWP filing with the Securities and Exchange Commission.

Each quarter, the notes will pay a contingent coupon at the rate of 14% a year if the ETF closes at or above its trigger price, 70% of its initial price, on the observation date for that quarter.

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

The payout at maturity will be par unless the ETF finishes below its trigger price, in which case investors will be exposed to the ETF’s decline from its initial share price.

RBC Capital Markets, LLC is the underwriter.

The notes will price Dec. 21.

The Cusip number is 78012KXS1.

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