RBC to price contingent income autocalls linked to Alcoa

By Sarah Lizee

Olympia, Wash., Jan. 29 – Royal Bank of Canada plans to price contingent income autocallable securities due Feb. 4, 2021 linked to the common stock of Alcoa Corp., according to an FWP filing with the Securities and Exchange Commission.

The notes will pay a contingent quarterly coupon at an annual rate of 9.5% if the shares close at or above the 60% coupon barrier level on the observation date for that quarter.

The notes will be called at par plus the contingent coupon if the stock closes at or above the initial price on any quarterly determination date other than the final one.

The payout at maturity will be par unless the shares finish below the 60% downside threshold level, in which case investors will lose 1% for each 1% decline from the initial price.

RBC Capital Markets, LLC is the agent. Morgan Stanley Wealth Management is the dealer.

The notes will settle on Jan. 31.

The Cusip number is 78014K436.

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