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Published on 1/27/2015 in the Prospect News Structured Products Daily.

RBC plans to price airbag phoenix autocallables linked to Citigroup

By Jennifer Chiou

New York, Jan. 27 – Royal Bank of Canada plans to price airbag phoenix autocallable optimization securities due July 29, 2016 linked to the common stock of Citigroup Inc., according to an FWP with the Securities and Exchange Commission.

Each month, the notes will pay a contingent coupon at the rate of 6% to 7% per year if Citigroup shares close at or above the coupon barrier, 80% of the initial share price, on the observation date for that month. The exact contingent coupon rate will be set at pricing.

The notes will be automatically called at par if Citigroup shares close at or above the initial share price on any autocall observation date, which occur quarterly.

If the notes are not called and the final price of Citigroup shares is greater than or equal to the conversion price, 90% of the initial share price, the payout at maturity will be par. Otherwise, investors will receive a number of Citigroup shares equal to $1,000 divided by the conversion price.

The notes (Cusip: 780082350) will price on Jan. 28 and settle on Jan. 30.

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


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