RBC plans one-year contingent income autocallablen notes linked to AIG

By Susanna Moon

Chicago, Sept. 24 - Royal Bank of Canada plans to price contingent income autocallable securities due September 2013 linked to the common stock of American International Group, Inc., according to an FWP filing with the Securities and Exchange Commission.

If AIG stock closes at or above the 80% downside threshold level on a quarterly determination date, investors will receive a contingent payment of $0.35625 to $0.38125 for each $10.00 note that quarter. The exact quarterly contingent payment will be set at pricing.

If the stock closes at or above the initial price on any of the first three quarterly determination dates, the notes will be redeemed at par plus the contingent payment.

If the notes are not called, the payout at maturity will be par plus the contingent payment unless the final share price is less than the downside threshold level, in which case the payout will be a number of AIG shares equal to $10.00 divided by the initial share price or, at Morgan Stanley's option, the cash equivalent.

RBC Capital Markets, LLC is the agent with Morgan Stanley Smith Barney LLC as dealer.

The notes will price and settle in September.

The Cusip number is 78008W354.

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