RBC plans contingent absolute return autocallables tied to Gilead

By Jennifer Chiou

New York, Dec. 10 – Royal Bank of Canada plans to price 0% contingent absolute return autocallable optimization securities due Dec. 21, 2015 linked to the common stock of Gilead Sciences, Inc., according to an FWP with the Securities and Exchange Commission.

The notes will be called at par plus an annualized call premium of 10% to 12.6% if Gilead stock closes at or above the initial share price on any quarterly observation date. The exact call premium will be set at pricing.

If the notes are not called and the final share price is greater than or equal to the trigger price, 75% of the initial share price, the payout at maturity will be par plus the absolute value of the stock return. Otherwise, investors will be fully exposed to the stock decline.

The notes (Cusip: 78011Y835) will price on Dec. 12 and settle on Dec. 17.

UBS Financial Services Inc. and RBC Capital Markets, LLC are the agents.

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