RBC plans autocallable contingent coupon barrier notes linked to Apple

By Angela McDaniels

Tacoma, Wash., Feb. 21 – Royal Bank of Canada plans to price autocallable contingent coupon barrier notes due Feb. 27, 2020 linked to the common stock of Apple Inc., according to an FWP filing with the Securities and Exchange Commission.

Each quarter, the notes will pay a contingent coupon if the stock closes at or above its trigger price, 75% of its initial price, on the observation date for that quarter. The contingent coupon rate is expected to be 6.8% to 7.3% per year and will be set at pricing.

After one year, the notes will be called at par if the stock closes at or above its initial share price on any quarterly observation date.

The payout at maturity will be par unless the stock finishes below its trigger price, in which case investors will lose 1% for every 1% that the final share price is less than the initial share price.

RBC Capital Markets, LLC is the underwriter.

The notes will price Feb. 22.

The Cusip number is 78012KB71.

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