RBC will price autocallable contingent coupon barrier notes on stocks

By Devika Patel

Knoxville, Tenn., Aug. 7 – Royal Bank of Canada plans to price 0% autocallable contingent coupon barrier notes due Aug. 15, 2019 linked to the least performing of the common stocks of Wells Fargo & Co. and Blackstone Group LP, according to an FWP filing with the Securities and Exchange Commission.

The notes will pay a quarterly coupon at an annual rate of 8% to 9% if each stock closes above its coupon barrier level, 70% of its initial level, on the observation date for that quarter. The exact coupon will be set at pricing.

The notes will be called at par plus the coupon if each stock closes at or above its initial price on any quarterly observation date, starting Feb. 12, 2018.

The payout at maturity will be par plus the final coupon unless either stock finishes below the 70% trigger level, in which case investors will lose 1% for each 1% that the lesser-performing stock’s final level is less than its initial level.

RBC Capital Markets, LLC is the agent.

The notes (Cusip: 78012K3R6) will price on Aug. 11 and settle on Aug. 16.

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