RBC plans trigger phoenix autocallables tied to SPDR S&P Bank ETF

By Marisa Wong

Morgantown, W.Va., April 20 – Royal Bank of Canada plans to price trigger phoenix autocallable notes due Oct. 31, 2017 linked to the SPDR S&P Bank exchange-traded fund, according to an FWP filing with the Securities and Exchange Commission.

The notes will pay a contingent quarterly coupon at an annual rate of 6.4% to 7.4% if the fund closes at or above the barrier price, 75% of the initial price, on the observation date for that quarter. The exact coupon will be set at pricing.

If the fund closes at or above the initial price on any quarterly observation date, the notes will be called at par of $10 plus the contingent coupon.

The payout at maturity will be par plus the contingent coupon unless the fund finishes below the 75% trigger level, in which case investors will be fully exposed to the decline.

RBC Capital Markets, LLC is the agent.

The notes will price on April 26 and settle on April 29.

The Cusip number is 78012KNP8.

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