RBC plans contingent income autocallables linked to Ford Motor stock

By Marisa Wong

Madison, Wis., June 1 - Royal Bank of Canada plans to price contingent income autocallable securities due July 2013 linked to Ford Motor Co. shares, according to an FWP filing with the Securities and Exchange Commission.

If Ford Motor stock closes at or above the 75% downside threshold level on a quarterly determination date, the contingent payment will be 3.375% to 4.375% of par. The exact payment will be set at pricing.

If the stock closes at or above the initial share price on any of the first three quarterly determination dates, the notes will be redeemed at par plus the contingent payment.

If the notes are not called and the stock finishes at or above the downside threshold level, the payout at maturity will be par plus the contingent payment.

Otherwise, the payout will be a number of Ford Motor shares equal to $10.00 divided by the initial share price or, at the issuer's option, the cash equivalent.

RBC Capital Markets, LLC is the agent, and Morgan Stanley Smith Barney LLC will handle distribution.

The notes (Cusip: 78008C630) will price on June 28 and settle three business days after that.

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