RBC to price contingent income autocallables linked to Michael Kors

By Jennifer Chiou

New York, Calif., Aug. 8 – Royal Bank of Canada plans to price contingent income autocallable securities due August 2015 linked to Michael Kors Holdings Ltd. shares, according to an FWP with the Securities and Exchange Commission.

The notes will pay a contingent quarterly coupon at an annual rate of 11.25% if Michael Kors stock closes at or above the 75% downside threshold level on a determination date for that quarter.

The notes will be redeemed at par of $10 plus the contingent payment if the stock closes at or above the initial level on any of the first three quarterly determination dates.

If the notes are not called, the payout at maturity will be par plus the contingent payment unless the stock finishes below its downside threshold level, in which case the payout will be a number of Michael Kors shares equal to $10 divided by the initial share price or, at the issuer's option, the cash equivalent.

The notes (Cusip: 78011Y256) will price on Aug. 15.

RBC Capital Markets, LLC is the agent. Morgan Stanley Wealth Management is the dealer.

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