RBC plans contingent coupon barrier autocallables linked to Tesla

By Susanna Moon

Chicago, June 2 – Royal Bank of Canada plans to price autocallable contingent coupon barrier notes due June 13, 2019 linked to Tesla, Inc. stock, according to an FWP filing with the Securities and Exchange Commission.

The notes will pay a contingent quarterly coupon at an annual rate of 8% to 9% if Tesla stock closes at or above its coupon barrier, 50% of its initial level, on the review date for that quarter.

The notes will be called at par plus the coupon if the stock closes at or above its initial level on any review date beginning Dec. 11, 2017.

The payout at maturity will be par plus the contingent coupon unless Tesla stock finishes below its 50% trigger price, in which case investors will lose 1% for each 1% decline.

RBC Capital Markets, LLC is the agent.

The notes will price on June 9 and settle on June 14.

The Cusip number is 78012KT80.

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