RBC plans contingent absolute return autocallables linked to Ford

By Angela McDaniels

Tacoma, Wash., June 10 – Royal Bank of Canada plans to price 0% contingent absolute return autocallable optimization securities due June 20, 2016 linked to the common stock of Ford Motor Co., according to an FWP filing with the Securities and Exchange Commission.

The notes will be called at par of $10 plus an annualized call premium of 8.5% to 10.5% if Ford stock closes at or above the initial share price on any quarterly observation date. The exact call premium will be set at pricing.

If the notes are not called and the final share price is greater than or equal to the trigger price, 85% of the initial share price, the payout at maturity will be par plus the absolute value of the stock return. Otherwise, investors will be fully exposed to the stock decline.

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

The notes are expected to price June 12 and settle June 17.

The Cusip number is 78013D300.

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