New Issue: RBC prices $3.89 million contingent income autocallables on Whole Foods

By Jennifer Chiou

New York, April 25 - Royal Bank of Canada priced $3,888,500 of contingent income autocallable securities due April 22, 2016 with step-up redemption threshold level feature linked to the common stock of Whole Foods Market, Inc., according to a 424B2 filing with the Securities and Exchange Commission.

If Whole Foods stock closes at or above the downside threshold level - 75% of the initial share price - on a quarterly determination date, investors will receive a contingent payment of $0.22 for each $10.00 note. Otherwise, no contingent payment will be made for that period.

If the closing share price is greater than or equal to the redemption threshold level on any of the first 11 quarterly determination dates, the notes will be automatically redeemed at par plus the contingent payment. The redemption threshold level is 105% of the initial share price on determination dates one through four, 110% of the initial share price on determination dates five through eight and 115% of the initial share price on determination dates nine through 11.

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 plus the contingent payment. If the final share price is less than the downside threshold level, the payout will be a number of Whole Foods shares equal to $10.00 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 will be through Morgan Stanley Smith Barney LLC.

Issuer:	Royal Bank of Canada
Issue:	Contingent income autocallable securities with step-up redemption threshold level feature
Underlying stock:	Whole Foods Market, Inc. (Symbol: WFM)
Amount:	$3,888,500
Maturity:	April 22, 2016
Coupon:	2.2% if closing price is at least 75% of initial price on quarterly determination date; otherwise, none
Price:	Par
Payout at maturity:	If final share price is at least 75% of initial price, par plus contingent quarterly payment; otherwise, 0.1161 Whole Foods shares per $10.00 principal amount, or, at RBC's option, equivalent cash amount of those shares
Initial price:	$86.10
Downside threshold level:	$64.58, 75% of initial share price
Redemption threshold levels:	$90.41, or 105% of initial share price, on first four determination dates; $94.71, or 110% of initial share price, on determination dates five through eight; $99.02, or 115% of initial share price, on determination dates nine through 11
Call:	Par plus contingent payment if closing share price greater than or equal to redemption threshold level on any of first 11 quarterly determination dates
Pricing date:	April 19
Settlement date:	April 24
Agent:	RBC Capital Markets, LLC with Morgan Stanley Smith Barney LLC as dealer
Fees:	2.25%, used for selling concessions
Cusip:	78008D364

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