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

By Susanna Moon

Chicago, Dec. 4 – Royal Bank of Canada plans to price contingent coupon callable yield notes due Dec. 22, 2017 linked to the iShares MSCI EAFE exchange-traded fund, the Russell 2000 index and the Euro Stoxx 50 index, according to a 424B2 filing with the Securities and Exchange Commission.

The notes will pay a contingent quarterly coupon at an annual rate of 8.3% if each component closes at or above the 65% barrier level on the determination date for that quarter.

The payout at maturity will be par plus the contingent coupon if each component finishes at or above the 65% barrier level.

If any component falls by more than 35%, investors will be fully exposed to any losses of the worse performing component.

The notes are callable at par on any coupon payment date beginning March 24, 2015.

RBC Capital Markets, LLC and Barclays are the underwriters.

The notes will price on Dec. 19 and settle on Dec. 24.

The Cusip number is 78010U6F9.

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