RBC plans to price trigger autocallables linked to UnitedHealth Group

By Angela McDaniels

Tacoma, Wash., May 2 – Royal Bank of Canada plans to price trigger autocallable contingent yield notes due May 6, 2022 linked to the common stock of UnitedHealth Group Inc., according to an FWP filing with the Securities and Exchange Commission.

Each quarter, the notes will pay a contingent coupon at the rate of 8% per year if UnitedHealth shares close at or above the downside threshold level, 65% to 70% of the initial share price, on the observation date for that quarter. The exact downside threshold level will be set at pricing.

Beginning Nov. 4, the notes will be automatically called at par of $10 if UnitedHealth shares close at or above the initial share price on any quarterly observation date.

If the notes are not called and the final share price is greater than or equal to the downside threshold level, the payout at maturity will be par. Otherwise, investors will lose 1% for every 1% that the final share price is less than the initial share price.

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

The notes will price May 3.

The Cusip number is 78014H755.

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