RBC plans to price phoenix autocallables linked to Gilead Sciences

By Angela McDaniels

Tacoma, Wash., Aug. 5 – Royal Bank of Canada plans to price phoenix autocallable notes due Aug. 26, 2015 linked to the common stock of Gilead Sciences, Inc., according to an FWP filing with the Securities and Exchange Commission.

Each quarter, the issuer will pay a contingent coupon at the rate of 16.4% per year if Gilead Sciences shares close at or above the barrier price, 80% of the initial share price, on the observation date for that quarter.

The notes will be called at par plus the contingent coupon if the stock closes at or above the initial share price on any quarterly observation date other than the final observation date.

If the notes are not called and the shares finish at or above the barrier price, the payout at maturity will be par plus the contingent coupon. Otherwise, investors will lose 1% for every 1% that the final share price is less than the initial share price.

The final share price will be the average of Gilead Sciences’ closing shares prices on the five trading days ending Aug. 21, 2015.

RBC Capital Markets, LLC is the underwriter with J.P. Morgan Securities LLC as placement agent.

The notes will price Aug. 8 and settle Aug. 13.

The Cusip number is 78010US32.

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