RBC plans one-year contingent income autocallables linked to Alibaba

By Susanna Moon

Chicago, March 21 – Royal Bank of Canada plans to price contingent income autocallable securities due March 29, 2018 linked to the American Depositary Shares of Alibaba Group Holding Ltd., according to an FWP filed with the Securities and Exchange Commission.

The notes will pay a contingent quarterly coupon at an annual rate of 9.75% if Alibaba shares close at or above the 80% downside threshold on the determination date for that quarter.

The notes will be called at par of $10 plus the contingent coupon if Alibaba shares close above the initial level on any of the first three determination dates.

The payout at maturity will be par plus the final contingent coupon, unless Alibaba shares finish below the 80% downside threshold, in which case investors will be fully exposed to any losses.

RBC Capital Markets, LLC is the agent, and Morgan Stanley Wealth Management is a distributor.

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

The Cusip number is 78014E521.

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