RBC plans contingent income autocallables linked to Las Vegas Sands

By Toni Weeks

San Diego, Oct. 2 - Royal Bank of Canada plans to price contingent income autocallable securities due October 2013 linked to the common stock of Las Vegas Sands Corp., according to an FWP filing with the Securities and Exchange Commission.

If Las Vegas Sands stock closes at or above the downside threshold level on a quarterly determination date, investors will receive a contingent payment of $0.3875 to $0.4375 for each $10.00 note that quarter. The downside threshold level is 70% of the initial share price.

If Las Vegas Sands stock closes at or above the initial share price on any of the first three quarterly determination dates, the notes will be redeemed at par plus the contingent payment.

If the notes are not called, the payout at maturity will be par plus the contingent payment unless the final share price is less than the downside threshold level, in which case the payout will be a number of Las Vegas Sands 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.

The notes (Cusip: 78008W388) are expected to price Oct. 10 and settle three business days later.

RBC Capital Markets, LLC is the agent with Morgan Stanley Smith Barney LLC handling distribution.

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