RBC plans trigger autocallable contingent yield notes on Dow, Russell

By Angela McDaniels

Tacoma, Wash., June 11 – Royal Bank of Canada plans to price trigger autocallable contingent yield notes due June 17, 2021 linked to the lesser performing of the Dow Jones industrial average and the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.

Each quarter, the notes will pay a contingent coupon at the rate of 7.5% to 8% per year if each index closes at or above its downside threshold, 75% of its initial level, on the observation date for that quarter. The exact contingent coupon rate will be set at pricing.

After six months, the notes will be automatically called at par of $10 if each index closes at or above its initial level on any quarterly observation date.

If the notes are not called and each index finishes at or above its downside threshold, the payout at maturity will be par. Otherwise, investors will lose 1% for every 1% that the lesser-performing index declines from its initial level.

UBS Financial Services Inc. and RBC Capital Markets, LLC are the agents.

The notes will price June 12.

The Cusip number is 78014J116.

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