RBC to price 10%-12.5% trigger phoenix autocallables tied to Freeport

By Angela McDaniels

Tacoma, Wash., March 23 - Royal Bank of Canada plans to price trigger phoenix autocallable optimization securities due March 28, 2013 linked to the common stock of Freeport-McMoRan Copper & Gold Inc., according to an FWP filing with the Securities and Exchange Commission.

If Freeport-McMoRan stock closes at or above the trigger price - 65% of the initial share price - on a quarterly observation date, the issuer will pay a contingent coupon for that quarter at the rate of 10% to 12.5% per year. Otherwise, no coupon will be paid that quarter. The exact contingent coupon rate will be set at pricing.

If the shares close at or above the initial price on a quarterly observation date, the notes will be called at par of $10 plus the contingent coupon.

If the notes are not called and Freeport-McMoRan shares finish at or above the trigger price, the payout at maturity will be par plus the contingent coupon. Otherwise, investors will be exposed to the share price decline from the initial price.

The notes (Cusip: 78008C135) are expected to price March 28 and settle March 30.

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

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