RBC to price trigger phoenix autocallables linked to BHP Billiton

By Toni Weeks

San Luis Obispo, Calif., May 1 - Royal Bank of Canada plans to price trigger phoenix autocallable optimization securities due Nov. 7, 2014 linked to the American Depositary Shares of BHP Billiton Ltd., according to an FWP filing with the Securities and Exchange Commission.

If BHP Billiton ADSs close at or above the trigger price - 75% of the initial share price - on a quarterly observation date, the issuer will pay a contingent coupon for that quarter at the rate of 10% to 12%. Otherwise, no coupon will be paid that quarter. The exact coupon will be set at pricing.

If the ADSs close at or above the initial price on any quarterly observation date, the notes will be called at par of $10 plus the contingent coupon.

If the notes are not called and BHP Billiton ADSs finish at or above the trigger price, the payout at maturity will be par plus the contingent coupon. Otherwise, investors will be exposed to the share price decline from the initial price.

The notes (Cusip: 78008Y202) are expected to price May 3 and settle May 8.

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

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