RBC plans 7.5%-10.25% trigger phoenix autocallables tied to Cisco

By Marisa Wong

Madison, Wis., May 16 - Royal Bank of Canada plans to price trigger phoenix autocallable optimization securities due May 23, 2013 linked to Cisco Systems, Inc. shares, according to an FWP filing with the Securities and Exchange Commission.

If Cisco stock closes at or above the 75% trigger level on a quarterly observation date, the issuer will pay a contingent coupon at an annualized rate of 7.5% to 10.25% for that quarter. The exact rate will be set at pricing.

If the shares close at or above the initial price on a quarterly observation date, the notes will be called at par of $10 plus the contingent coupon.

If the notes are not called and Cisco shares finish at or above the trigger price, the payout at maturity will be par plus the contingent coupon.

Otherwise, investors will be fully exposed to any losses.

UBS Financial Services Inc. and RBC Capital Markets, LLC are the underwriters.

The notes (Cusip: 78008C499) will price on May 18 and settle on May 24.

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