RBC to price contingent coupon barrier autocallables linked to Tesla

By Marisa Wong

Morgantown, W.Va., Oct. 6 – Royal Bank of Canada plans to price autocallable contingent coupon barrier notes due Oct. 15, 2020 linked to the common stock of Tesla, Inc., according to an FWP filing with the Securities and Exchange Commission.

If the stock closes at or above its coupon barrier, 55% of its initial price, on a quarterly observation date, the notes will pay a coupon that quarter at an annual rate of 9% to 9.5%. The exact coupon will be set at pricing.

The notes will be called at par plus the coupon if the stock closes at or above its initial price on any quarterly observation date, starting April 10, 2018.

The payout at maturity will be par plus the final coupon unless the stock finishes below the 55% trigger price, in which case investors will lose 1% for each 1% share price decline from the initial price.

RBC Capital Markets Corp. is the agent.

The notes will price on Oct. 10.

The Cusip number is 78013GKD6.

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