RBC plans contingent coupon callable yield notes tied to indexes, fund

By Susanna Moon

Chicago, July 2 – Royal Bank of Canada plans to price contingent coupon callable yield notes due Feb. 2, 2016 linked to the worst performing of the Euro Stoxx 50 index, the Russell 2000 index and the iShares MSCI EAFE exchange-traded fund, according to an FWP with the Securities and Exchange Commission.

The notes will pay a contingent quarterly coupon at an annual rate of at least 8% if each component closes at or above its barrier level, 75% of the initial level, on the observation date for that quarter.

The notes will be callable at par plus the contingent coupon on any quarterly interest payment beginning Oct. 31, 2014.

The payout at maturity will be par unless any component finishes at or below its 75% knock-in level, in which case investors will be fully exposed to any losses of the worst performing component.

RBC Capital Markets, LLC and Barclays are the agents.

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

The Cusip number is 78010UK22.

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