RBC plans trigger phoenix autocallables linked to iShares Russell

By Toni Weeks

San Diego, Nov. 4 - Royal Bank of Canada plans to priced 0% trigger phoenix autocallable optimization securities due Nov. 17, 2014 linked to the iShares Russell 2000 index fund, according to an FWP filing with the Securities and Exchange Commission.

If the fund closes at or above the trigger price - 55% of the initial share price - on any quarterly observation date, the issuer will pay a contingent coupon of 6.75% to 8.75%. Otherwise, no coupon will be paid for that quarter. The exact coupon will be set at pricing.

If the fund closes at or above the initial price on any observation date after one year, the notes will be called at par of $10 plus the contingent coupon.

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

The notes (Cusip: 78010W558) are expected to price Nov. 9 and settle Nov. 15.

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

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