RBC plans trigger phoenix autocallable optimization notes on Peabody

By Marisa Wong

Madison, Wis., April 13 - Royal Bank of Canada plans to price trigger phoenix autocallable optimization securities due April 18, 2012 linked to the common stock of Peabody Energy Corp., according to an FWP filing with the Securities and Exchange Commission.

If the price of Peabody stock closes at or above the trigger price - 75% of the initial share price - on any monthly observation date, the issuer will pay a contingent coupon of 15% to 17% per year. Otherwise, no coupon will be paid for that month. The exact rate will be set at pricing.

If the closing share price is greater than or equal to the initial price on any of the observation dates, the notes will be called at par of $10 plus the contingent coupon.

If the notes are not called and the Peabody share price finishes at or above the trigger price, the payout at maturity will be par plus the contingent coupon. Otherwise, investors will be exposed to any share price decline.

The notes (Cusip: 78009C290) are expected to price April 14 and settle April 19.

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

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