New Issue: RBC prices $4.48 million contingent income autocallables on Goldman Sachs, Wells Fargo

By Toni Weeks

San Luis Obispo, Calif., Oct. 10 - Royal Bank of Canada priced $4.48 million of contingent income autocallable securities due Oct. 13, 2016 linked to the worst performing of the common stocks of Goldman Sachs Group, Inc. and Wells Fargo & Co., according to a 424B2 filing with the Securities and Exchange Commission.

If each stock closes at or above its downside threshold level, 70% of its initial share price, on a quarterly determination date, the notes will pay a contingent payment of 2.45% for that quarter. The amount is equivalent to 9.8% per year.

If the closing price of each stock is greater than or equal to its initial share price on any of the first 11 quarterly determination dates, the notes will be automatically redeemed at par of $10 plus the contingent payment.

If the notes are not called and the final share price of each stock is greater than or equal to its downside threshold level, the payout at maturity will be par plus the contingent payment. Otherwise, the payout will be a number of shares of the worst-performing stock equal to $10 divided by the initial share price or, at the issuer's option, a cash amount equal to the value of those shares.

RBC Capital Markets LLC is the agent. Distribution is through Morgan Stanley Wealth Management.

Issuer:	Royal Bank of Canada
Issue:	Contingent income autocallable securities
Underlying stocks:	Goldman Sachs Group, Inc. (Symbol: GS) and Wells Fargo & Co. (Symbol: WFC)
Amount:	$4,478,700
Maturity:	Oct. 13, 2016
Contingent payment:	2.45% per quarter that each stock closes at or above downside threshold level on quarterly determination date
Price:	Par of $10
Payout at maturity:	If each stock finishes at or above downside threshold level, par plus contingent payment; otherwise, number of shares of worst-performing stock equal to exchange ratio, $10 divided by initial share price, or value of those shares in cash
Call:	At par plus contingent payment if shares close at or above initial level on any of the first 11 quarterly determination dates
Initial share prices:	$153.05 for Goldman Sachs, $40.24 for Wells Fargo
Downside threshold:	$107.14 for Goldman Sachs, $28.17 for Wells Fargo, 70% of initial share price
Exchange ratios:	0.0653 Goldman Sachs shares, 0.2485 Wells Fargo shares, $10 divided by initial share price
Pricing date:	Oct. 8
Settlement date:	Oct. 11
Agent:	RBC Capital Markets, LLC
Distribution:	Morgan Stanley Wealth Management
Fees:	2.25%
Cusip:	78009Q638

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