RBC to price contingent income callable notes tied to three indexes

By Sarah Lizee

Olympia, Wash., Oct. 10 – Royal Bank of Canada plans to price contingent income issuer callable securities due Oct. 23, 2019 linked to the worst performing of the Euro Stoxx 50 index, 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 pay a contingent coupon at an annual rate of 10.3% if each index closes at or above its coupon barrier, 80% of its initial index level, on each day during that quarter.

The notes are callable at par on any quarterly determination date beginning January 2019.

If each index finishes at or above its 75% downside threshold level, the payout at maturity will be par plus the final contingent coupon, if any. If the final level of any index is less than its downside threshold level, investors will be fully exposed to the decline of the least-performing index.

RBC Capital Markets, LLC is the agent. Distribution is through Morgan Stanley Wealth Management.

The notes will price on Oct. 12 and settle on Oct. 17.

The Cusip number is 78013XN20.

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