RBC plans contingent absolute return autocallables linked to Micron

By Susanna Moon

Chicago, Jan. 21 – Royal Bank of Canada plans to price 0% contingent absolute return autocallable optimization securities due Feb. 1, 2016 linked to Micron Technology, Inc. shares, according to a 424B2 filing with the Securities and Exchange Commission.

The notes will be called at par of $10 plus an annualized call premium of 8% to 10.5% if Micron shares close at or above the initial price on any quarterly observation date. The exact call premium will be set at pricing.

If the notes are not called and the final share price is greater than or equal to the trigger level, 70% of the initial price, the payout at maturity will be par plus the absolute value of the stock return.

Otherwise, investors will be fully exposed to any losses.

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

The notes will price on Jan. 23 and settle on Jan. 28.

The Cusip number is 780082319.

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