RBC plans contingent coupon autocallables linked to SPDR S&P Biotech

By Angela McDaniels

Tacoma, Wash., Oct. 3 – Royal Bank of Canada plans to price autocallable contingent coupon barrier notes due Oct. 18, 2018 linked to the SPDR S&P Biotech exchange-traded fund, according to an FWP filing with the Securities and Exchange Commission.

Each quarter, the notes will pay a contingent coupon if the ETF closes at or above its trigger price, 70% of its initial price, on the observation date for that quarter. The contingent coupon rate is expected to be 10.2% to 11.2% per year and will be set at pricing.

The notes will be called at par if the ETF closes at or above its initial share price on any quarterly observation date.

The payout at maturity will be par unless the ETF finishes below its trigger price, in which case investors will be exposed to the ETF’s decline from its initial share price.

RBC Capital Markets, LLC is the underwriter.

The notes will price Oct. 14.

The Cusip number is 78012KTY3.

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