RBC plans airbag phoenix autocallable notes due 2017 linked to Splunk

By Susanna Moon

Chicago, July 28 – Royal Bank of Canada plans to price airbag phoenix autocallable optimization securities due Jan. 31, 2017 linked to Splunk Inc. shares, according to an FWP filing with the Securities and Exchange Commission.

The notes will pay a contingent monthly coupon at an annual rate of 8.6% to 10.6% per year if Splunk shares close at or above the coupon barrier, 65% of the initial share price, on the observation date for that month.

The notes will be called at par if Splunk shares close at or above the initial share price on any quarterly observation date.

If the notes are not called and the final price of Splunk shares is greater than or equal to the conversion price, 75% of the initial share price, then the payout at maturity will be par.

Otherwise, investors will receive a number of Splunk shares equal to $1,000 divided by the conversion price.

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

The notes will price on July 29 and settle on July 31.

The Cusip number is 78013D508.

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