New Issue: RBC sells $2.01 million contingent income autocallables on Michael Kors

By Toni Weeks

San Luis Obispo, Calif., April 9 - Royal Bank of Canada priced $2.01 million of contingent income autocallable securities due April 8, 2016 with step-down redemption threshold level feature linked to the common stock of Michael Kors Holdings Ltd., according to a 424B2 filing with the Securities and Exchange Commission.

If Michael Kors stock closes at or above the downside threshold level - 70% of the initial share price - on a quarterly determination date, investors will receive a contingent payment of $0.2875 for each $10.00 note. Otherwise, no contingent payment will be made for that period.

If the closing share price is greater than or equal to the redemption threshold level on any of the first 11 quarterly determination dates, the notes will be automatically redeemed at par plus the contingent payment. The redemption threshold level is 95% of the initial share price on determination dates one through four, 90% of the initial share price on determination dates five through eight and 85% of the initial share price on determination dates nine through 11.

If the notes are not called and the final share price is greater than or equal to the downside threshold level, the payout at maturity will be par plus the contingent payment. If the final share price is less than the downside threshold level, the payout will be a number of Michael Kors shares equal to $10.00 divided by the initial share price or, at the issuer's option, a cash amount equal to the value of those shares.

RBC Capital Markets, LLC is the agent. Distribution will be through Morgan Stanley Smith Barney LLC.

Issuer:	Royal Bank of Canada
Issue:	Contingent income autocallable securities with step-down redemption threshold level feature
Underlying stock:	Michael Kors Holdings Ltd. (Symbol: KORS)
Amount:	$2,009,500
Maturity:	April 8, 2016
Coupon:	2.875% if closing price is at least 70% of initial price on quarterly determination date; otherwise, none
Price:	Par
Payout at maturity:	If final share price is at least 70% of initial price, par plus contingent quarterly payment; otherwise, 0.18188 Michael Kors shares per $10.00 principal amount, or, at RBC's option, equivalent cash amount of those shares
Initial price:	$54.98
Downside threshold level:	$38.49, 70% of initial share price
Redemption threshold levels:	$52.23, or 95% of initial share price, on first four determination dates; $49.48, or 90% of initial share price, on determination dates five through eight; $46.73, or 85% of initial share price, on determination dates nine through 11
Call:	Par plus contingent payment if closing share price greater than or equal to redemption threshold level on any of first 11 quarterly determination dates
Pricing date:	April 5
Settlement date:	April 10
Agent:	RBC Capital Markets, LLC with Morgan Stanley Smith Barney LLC as dealer
Fees:	2.25%, used for selling concessions
Cusip:	78008D398

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