RBC to price contingent income autocallables tied to Blackstone

By Marisa Wong

Madison, Wis., May 28 - Royal Bank of Canada plans to price contingent income autocallable securities due June 2017 linked to the common units of Blackstone Group LP, according to an FWP filing with the Securities and Exchange Commission.

If Blackstone units close at or above the downside threshold level, 70% of the initial price, on a quarterly determination date, the notes will pay a contingent payment of $0.25 per $10 note for that quarter.

If Blackstone units close at or above the initial 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 price is greater than or equal to the downside threshold level, the payout at maturity will be par plus the contingent payment. Otherwise, the payout will be a number of Blackstone units equal to $10 divided by the initial share price or, at the issuer's option, a cash amount equal to the value of those units.

RBC Capital Markets, LLC is the agent with Morgan Stanley Wealth Management handling distribution.

The notes are expected to price on May 30.

The Cusip number is 78011Q501.

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