RBC to price trigger phoenix callable securities linked to Facebook

By Toni Weeks

San Luis Obispo, Calif., March 24 - Royal Bank of Canada plans to price trigger phoenix callable optimization securities due March 31, 2015 linked to the common stock of Facebook Inc., according to an FWP filing with the Securities and Exchange Commission.

If the share price closes at or above the coupon barrier, 60% of the initial share price, on any quarterly contingent coupon payment date, the notes will pay a contingent coupon at an annualized rate of 14.5% for that quarter.

The notes are callable on any interest payment date at par plus the contingent coupon, if any.

If the notes are not called, the payout at maturity will be par plus the contingent coupon unless the stock finishes below the 60% trigger level, in which case investors will be fully exposed to the share price decline.

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

The notes (Cusip: 78010Y851) are expected to price March 25 and settle March 28.

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