RBC plans to price trigger phoenix autocallables tied to Russell, S&P

By Devika Patel

Knoxville, Tenn., Jan. 12 – Royal Bank of Canada plans to price trigger phoenix autocallable notes due Jan. 18, 2023 linked to the lesser performing of the Russell 2000 index and the S&P 500 index, according to an FWP filing with the Securities and Exchange Commission.

Each quarter, the notes will pay a contingent coupon at an annual rate of 5.52% if each index closes at or above its coupon barrier level, 60% of its initial level, on the observation date for that quarter.

Beginning Jan. 12, 2017, the notes will be called at par if each index closes at or above its initial level on any quarterly call observation date.

If the notes are not called and each index finishes at or above its trigger level, 50% of its initial level, the payout at maturity will be par plus the final contingent coupon. Otherwise, investors will be exposed to the decline of the lesser-performing index.

RBC Capital Markets, LLC is the agent.

The notes (Cusip: 78012KKT3) will price Jan. 12 and settle Jan. 15.

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