RBC to price trigger phoenix autocallables linked to PotashCorp

By Angela McDaniels

Tacoma, Wash., Dec. 20 - Royal Bank of Scotland plans to price trigger phoenix autocallable optimization securities due Dec. 31, 2012 linked to the common stock of Potash Corp. of Saskatchewan Inc., according to an FWP filing with the Securities and Exchange Commission.

If PotashCorp stock closes at or above the trigger price - 65% of the initial share price - on a quarterly observation date, the issuer will pay a contingent coupon for that quarter at the rate of 12.3% to 15.3% per year. Otherwise, no coupon will be paid that quarter. The exact coupon rate will be set at pricing.

If the shares close at or above the initial price on a quarterly observation date, the notes will be called at par of $10 plus the contingent coupon.

If the notes are not called and PotashCorp shares finish at or above the trigger price, the payout at maturity will be par plus the contingent coupon. Otherwise, investors will be exposed to the share price decline from the initial price.

The notes (Cusip: 78010V683) are expected to price Dec. 28 and settle Dec. 30.

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

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