RBC plans autocallable contingent coupon barrier notes tied to stocks

By Angela McDaniels

Tacoma, Wash., July 31 – Royal Bank of Canada plans to price autocallable contingent coupon barrier notes due Aug. 7, 2020 linked to the least performing of the common stocks of Amazon.com, Inc., Facebook, Inc., Alphabet Inc. and Netflix Inc., according to an FWP filing with the Securities and Exchange Commission.

Each quarter, the notes pay a contingent coupon if each stock closes at or above its trigger price, 50% of its initial price, on the observation date for that quarter. The contingent coupon rate is expected to be 8.6% to 9.6% per year and will be set at pricing.

The notes will be called at par if each stock closes at or above its initial share price on any quarterly observation date.

The payout at maturity will be par unless any stock finishes below its trigger price, in which case investors will be exposed to the decline of the least-performing stock from its initial share price.

RBC Capital Markets, LLC is the underwriter.

The notes will price Aug. 4.

The Cusip number is 78012K3X3.

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