RBC plans contingent income autocallables linked to U.S. Steel

By Marisa Wong

Madison, Wis., July 6 – Royal Bank of Canada plans to price contingent income autocallable securities due July 19, 2016 linked to United States Steel Corp. 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 14.5% if the shares close at or above the 65% downside threshold level 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 price on any of the first three determination dates.

The payout at maturity will be par plus the final coupon unless the shares finish below the downside threshold level, in which case investors will receive a number of U.S. Steel shares equal to $10 divided by the initial price or, at the issuer’s option, the cash equivalent.

RBC Capital Markets, LLC is the agent with Morgan Stanley Wealth Management handling distribution.

The notes will price on July 10 and settle on July 15.

The Cusip number is 78013D417.

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