RBC plans phoenix autocallable notes due 2016 linked to Ford Motor

By Susanna Moon

Chicago, Feb. 24 – Royal Bank of Canada plans to price phoenix autocallable notes due March 16, 2016 linked to Ford Motor Co. shares, according to an FWP with the Securities and Exchange Commission.

The notes will pay a contingent quarterly coupon at an annual rate of 9.52% if the stock closes at or above the coupon barrier, 80% of the initial share price, on the observation date for that quarter.

The notes will be called at par if Ford shares close at or above the initial share price on any observation date other than the final date.

The payout at maturity will be par unless the stock finishes below the 80% trigger level, in which case investors will be fully exposed to any losses.

RBC Capital Markets, LLC is the underwriter with JPMorgan Chase Bank, NA and J.P. Morgan Securities LLC as placement agents.

The notes will price on Feb. 27 and settle on March 4.

The Cusip number is 78012KBX4.

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