RBC plans to price phoenix autocallable notes linked to Schlumberger

By Angela McDaniels

Tacoma, Wash., June 25 - Royal Bank of Canada plans to price phoenix autocallable securities due July 16, 2014 linked to the common stock of Schlumberger NV, according to an FWP filing with the Securities and Exchange Commission.

If Schlumberger stock closes at or above the barrier price, 80% of the initial share price, on a quarterly observation date, the issuer will pay a contingent coupon for that quarter at the rate of 12.85% per year. Otherwise, no coupon will be paid that quarter.

If the shares close at or above the initial price on any quarterly observation date, the notes will be called at par plus the contingent coupon.

If the notes are not called and Schlumberger shares finish at or above the trigger price, the payout at maturity will be par plus the contingent coupon. Otherwise, investors will be exposed to the share price decline from the initial price.

RBC Capital Markets, LLC is the underwriter with J.P. Morgan Securities LLC as dealer.

The notes are expected to price June 28 and settle July 3.

The Cusip number is 78008S4K9.

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