RBC to price contingent coupon callable yield notes tied to Facebook

By Toni Weeks

San Luis Obispo, Calif., July 15 – Royal Bank of Canada plans to price contingent coupon callable yield notes due July 21, 2016 linked to the common stock of Facebook, Inc., according to a 424B2 filing with the Securities and Exchange Commission.

Each quarter, the notes will pay a coupon at a rate of at least 10% per year if Facebook stock closes at or above the barrier level, 63% of the initial share price, on the observation date for that quarter. The exact coupon will be set at pricing.

If the final share price is greater than or equal to the 63% barrier level, the payout at maturity will be par. Otherwise, investors will receive a number of shares equal to $1,000 divided by the initial share price or, at the issuer’s option, the cash value of those shares.

The notes are callable at par on any interest payment date.

RBC Capital Markets, LLC and Barclays are the agents.

The notes (Cusip: 78010UP43) are expected to price July 17 and settle July 22.

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