RBC plans trigger phoenix autocallables due 2016 tied to SPDR S&P 500

By Angela McDaniels

Tacoma, Wash., Nov. 15 - Royal Bank of Canada plans to price trigger phoenix autocallable optimization securities due Nov. 30, 2016 linked to the SPDR S&P 500 ETF Trust, according to an FWP filing with the Securities and Exchange Commission.

If the trust's shares close at or above the trigger price - 60% of the initial share price - on a quarterly observation date, the issuer will pay a contingent coupon for that quarter. Otherwise, no coupon will be paid that quarter. The contingent coupon is expected to be at least 7% per year will be set at pricing.

Beginning Nov. 26, 2012, the notes will be called at par of $10 plus the contingent coupon if the shares close at or above the initial price on a quarterly observation date.

If the notes are not called and the ETF's 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.

The notes (Cusip: 78010W137) are expected to price Nov. 23 and settle Nov. 30.

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

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