RBC plans autocallable access notes on iShares Russell via Wells Fargo

By Toni Weeks

San Diego, Nov. 3 - Royal Bank of Canada plans to price 0% autocallable access securities with fixed percentage buffered downside due Dec. 3, 2013 linked to the iShares Russell 2000 index fund via Wells Fargo Securities, LLC, according to a 424B2 filing with the Securities and Exchange Commission.

The notes will be automatically called at par plus a call premium if the share price is equal to or greater than the initial price on any of three call dates. The premium is 9% to 11% for the first call date of Dec. 3, 2012, 13.5% to 16.5% for the second call date of June 3, 2013 and 18% to 22% for the final call date of Nov. 25, 2013. The exact call premiums will be set at pricing.

If the notes are not called and the final share price is at least 90% of the initial price, the payout at maturity will be par. Investors will lose 1% for every 1% decline in the fund beyond the 10% buffer.

The notes (Cusip: 78008TXL3) are expected to price in November and settle in December.

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