RBC to price contingent income autocallables linked to Blackstone

By Angela McDaniels

Tacoma, Wash., Oct. 14 – Royal Bank of Canada plans to price contingent income autocallable securities due Oct. 24, 2016 linked to the common units of Blackstone Group LP, according to an FWP filing with the Securities and Exchange Commission.

The notes will pay a contingent coupon each quarter at an annualized rate of 14% if Blackstone units close at or above the downside threshold level, 75% of the initial unit price, on the determination date for that quarter.

The notes will be called at par of $10 plus the contingent coupon if Blackstone units close at or above the initial unit price on Jan. 19, 2016, April 18, 2016 or July 18, 2016.

If the final unit price is greater than or equal to the downside threshold level, the payout at maturity will be par plus the final contingent coupon. Otherwise, investors will lose 1% for every 1% that the final unit price is less than the initial unit price.

RBC Capital Markets, LLC is the agent. Distribution is through Morgan Stanley Smith Barney LLC.

The notes are expected to price Oct. 16 and settle Oct. 21.

The Cusip number is 78013D847.

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