RBC to price contingent income autocallables linked to Netflix

By Toni Weeks

San Luis Obispo, Calif., Dec. 12 – Royal Bank of Canada plans to price contingent income autocallable securities due Dec. 24, 2015 linked to Netflix, Inc. shares, according to an FWP filing with the Securities and Exchange Commission.

The notes will pay a contingent quarterly coupon at an annual rate of 10.8% if Netflix stock closes at or above the 70% downside threshold level on a determination date for that quarter.

The notes will be redeemed at par of $10 plus the contingent payment if the stock closes at or above the initial level on any of the first three quarterly determination dates.

If the notes are not called, the payout at maturity will be par plus the contingent payment unless the stock finishes below its 70% downside threshold level, in which case the payout will be a number of Netflix shares equal to $10 divided by the initial share price or, at the issuer's option, the cash equivalent.

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

The notes will price Dec. 19 and settle Dec. 24.

The Cusip number is 78011Y868.

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