RBC to price 7.8%-9.8% airbag phoenix autocallables linked to Vertex

By Toni Weeks

San Luis Obispo, Calif., Feb. 23 – Royal Bank of Canada plans to price 7.8% to 9.8% airbag phoenix autocallable optimization notes due Feb. 29, 2016 linked to the common stock of Vertex Pharmaceuticals Inc., according to an FWP with the Securities and Exchange Commission.

Interest is payable monthly. The exact coupon will be set at pricing.

The notes will be automatically called at par if Vertex Pharmaceuticals shares close at or above the initial share price on any autocall observation date, which occur quarterly.

If the notes are not called and the final price of Vertex Pharmaceuticals shares is greater than or equal to the conversion price, 75% of the initial share price, the payout at maturity will be par. Otherwise, investors will receive a number of Vertex Pharmaceuticals shares equal to $1,000 divided by the conversion price.

The notes (Cusip: 780082533) will price Feb. 25 and settle Feb. 27.

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

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