RBC plans contingent coupon callable yield notes on indexes, fund

By Toni Weeks

San Luis Obispo, Calif., July 11 – Royal Bank of Canada plans to price contingent coupon callable yield notes due Jan. 20, 2016 linked to the Russell 2000 index, the Euro Stoxx 50 index and the iShares MSCI Emerging Markets exchange-traded fund, according to an FWP filing with the Securities and Exchange Commission.

The notes will pay a quarterly coupon at an annualized rate of 9% if each underlying component closes at or above its 75% barrier level on the observation date for that quarter. The exact coupon will be set at pricing.

The notes are callable at par plus the contingent coupon, if any, on any interest payment date.

The payout at maturity will be par unless either index or the fund finishes below its 75% barrier level, in which case investors will receive par plus the return of the worst-performing component.

RBC Capital Markets, LLC and Barclays are the underwriters.

The notes will price July 14 and settle July 17.

The Cusip number is 78010UN52.

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