RBC plans autocallable contingent coupon barrier notes on indexes, ETF

By Wendy Van Sickle

Columbus, Ohio, May 24 – Royal Bank of Canada plans to price 0% autocallable contingent coupon barrier notes due June 12, 2020 linked to the least performing of the S&P 500 index, the Euro Stoxx 50 index and the iShares MSCI Emerging Markets exchange-traded fund, according to an FWP filing with the Securities and Exchange Commission.

The notes will pay a quarterly coupon at an annual rate of 7.7% to 8.7% if each asset closes above its trigger level, 75% of its initial level, on the review date for that quarter.

The notes will be called at par plus the coupon if each asset closes above its initial price on a review date, starting June 11, 2018.

The payout at maturity will be par plus the final coupon unless any asset finishes below the 75% trigger level, in which case investors will lose 1% for each 1% that the least-performing asset’s final level is less than its initial level.

RBC Capital Markets, LLC is the agent.

The notes (Cusip: 78012KU54) will price on June 9 and settle on June 14.

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