RBC plans trigger phoenix autocallable optimization notes on Teck

By Toni Weeks

San Diego, April 5 - Royal Bank of Canada plans to price trigger phoenix autocallable optimization securities due April 12, 2012 linked to the common stock of Teck Resources Ltd., according to an FWP with the Securities and Exchange Commission.

If the price of Teck stock closes at or above the coupon barrier/trigger price - 70% of the initial share price - on any of four quarterly observation dates, the issuer will pay a contingent coupon of 14.75% to 17.25% per year. Otherwise, no coupon will be paid for that quarter. The exact rate will be set at pricing.

If the closing share price is greater than or equal to the initial price on any of the observation dates, the notes will be called at par of $10 plus the contingent coupon.

If the notes are not called and the Teck share price finishes at or above the trigger price, the payout at maturity will be par plus the contingent coupon. Otherwise, investors will be exposed to any share price decline.

The notes (Cusip: 78009C274) are expected to price April 8 and settle April 13.

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

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