RBC plans contingent income autocallable notes tied to Facebook

By Marisa Wong

Madison, Wis., Jan. 24 - Royal Bank of Canada plans to price contingent income autocallable securities due February 2015 linked to the common stock of Facebook, Inc., according to an FWP filing with the Securities and Exchange Commission.

The notes will pay a contingent quarterly coupon of 2% if Facebook stock closes at or above the downside threshold level, 65% of the initial share price, on a determination date for that quarter.

The notes will be redeemed at par of $10 plus the contingent coupon if the stock closes at or above the initial share price on any of the first three quarterly determination dates.

If the notes are not called and the final share price is greater than or equal to the downside threshold level, the payout at maturity will be par plus the contingent coupon.

Otherwise, the payout will be a number of Facebook shares equal to $10 divided by the initial share price or, at the issuer's option, a cash amount equal to the value of those shares.

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

The notes will price Jan. 31.

The Cusip number is 78010Y521.

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