RBC plans contingent coupon barrier callable notes tied to Microsoft

By Susanna Moon

Chicago, Aug. 16 – Royal Bank of Canada plans to price callable contingent coupon barrier notes due Sept. 3, 2019 linked to the common stock of Microsoft Corp., according to an FWP filing with the Securities and Exchange Commission.

The notes will pay a quarterly coupon at an annual rate of 7% if the stock closes above its 75% coupon barrier on the observation date for that quarter.

The notes are called at par plus the coupon on any interest payment date.

The payout at maturity will be par plus the final coupon unless the stock finishes below its 75% trigger level, in which case investors will lose 1% for each 1% decline.

RBC Capital Markets, LLC is the agent.

The notes will price on Aug. 28 and settle on Aug. 31.

The Cusip number is 78012K4K0.

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