RBC to price trigger phoenix autocallables linked to Biogen Idec

By Toni Weeks

San Luis Obispo, Calif., Feb. 5 - Royal Bank of Canada plans to price trigger phoenix autocallable optimization securities due Aug. 13, 2015 linked to the common stock of Biogen Idec Inc., according to an FWP filing with the Securities and Exchange Commission.

If Biogen Idec stock closes at or above the coupon barrier - 75% of the initial share price - on a quarterly observation date, the issuer will pay a contingent coupon for that quarter at the rate of 12% to 14.5%. Otherwise, no coupon will be paid that quarter. The exact coupon will be set at pricing.

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

If the notes are not called and Biogen Idec shares finish at or above the 75% 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: 78010Y588) are expected to price Feb. 7 and settle Feb. 12.

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

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