RBC plans to price contingent income autocallables linked to Delta

By Susanna Moon

Chicago, April 17 – Royal Bank of Canada plans to price contingent income autocallable securities due April 28, 2016 linked to Delta Air Lines, Inc. shares, according to an FWP filing with the Securities and Exchange Commission.

The notes will pay a contingent quarterly coupon at an annual rate of 10% if the shares close at or above the 70% barrier level 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 price on any of the first three determination dates.

The payout at maturity will be par plus the final coupon unless the shares finish below the 70% barrier level, in which case investors will receive a number of Delta shares equal to $10 divided by the initial price or, at the issuer’s option, the cash equivalent.

RBC Capital Markets, LLC is the agent with Morgan Stanley Wealth Management handling distribution.

The notes will price on April 24 and settle on April 29.

The Cusip number is 78013D136.

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