RBC plans to price phoenix autocallables linked to Bank of America

By Angela McDaniels

Tacoma, Wash., May 13 - Royal Bank of Canada plans to price phoenix autocallable notes due May 13, 2015 linked to the common stock of Bank of America Corp., according to a 424B2 filing with the Securities and Exchange Commission.

Each quarter, the issuer will pay a contingent coupon at the rate of 10.1% per year if Bank of America shares close at or above the barrier price, 85% of the initial share price, 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 share price on quarterly observation date other than the final observation date.

If the notes are not called and the shares finish at or above the barrier price, the payout at maturity will be par plus the contingent coupon. Otherwise, investors will lose 1% for every 1% that the final share price is less than the initial share price.

The final share price will be the average of Bank of America's closing shares prices on the five trading days ending May 8, 2015.

RBC Capital Markets, LLC is the underwriter with J.P. Morgan Securities LLC as placement agent.

The notes will price May 16 and settle May 21.

The Cusip number is 78010UYU5.

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