RBC plans contingent coupon barrier notes tied to Chipotle, Starbucks

By Angela McDaniels

Tacoma, Wash., Aug. 1 – Royal Bank of Canada plans to price autocallable contingent coupon barrier notes due Aug. 9, 2022 linked to the lesser performing of the common stocks of Chipotle Mexican Grill, Inc. and Starbucks Corp., according to an FWP filing with the Securities and Exchange Commission.

Each quarter, the notes pay a contingent coupon if each stock closes at or above its trigger price, 60% of its initial price, on the observation date for that quarter. The contingent coupon rate is expected to be 7.63% to 8.63% per year and will be set at pricing.

Beginning Feb. 5, 2018, the notes will be automatically called at par if each stock closes at or above its initial share price on any quarterly observation date.

The payout at maturity will be par unless either stock finishes below its trigger price, in which case investors will be exposed to the decline of the lesser-performing stock from its initial share price.

RBC Capital Markets, LLC is the underwriter.

The notes will price Aug. 4.

The Cusip number is 78012K4E4.

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