RBC plans contingent coupon barrier notes linked to S&P 500, Russell

By Angela McDaniels

Tacoma, Wash., Oct. 14 – Royal Bank of Canada plans to price callable contingent coupon barrier notes due Oct. 25, 2018 linked to the lesser performing of the S&P 500 index and the Russell 2000 index, according to an FWP filing with the Securities and Exchange Commission.

Each quarter, the notes will pay a contingent coupon if each index closes at or above its trigger level, 70% of its initial level, on the observation date for that quarter. The contingent coupon rate is expected to be 6.2% to 7.2% per year and will be set at pricing.

The notes will be callable at par on any quarterly observation date.

The payout at maturity will be par unless either index finishes below its trigger level, in which case investors will be exposed to the decline of the lesser-performing index from its initial level.

RBC Capital Markets, LLC is the underwriter.

The notes will price Oct. 21.

The Cusip number is 78012KUR6.

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