Published on 2/10/2012 in the Prospect News Structured Products Daily.
New Issue: RBC prices $4 million 7.2% autocallable RevCons tied to Apple, Microsoft
By Angela McDaniels
Tacoma, Wash., Feb. 10 - Royal Bank of Canada priced $4 million of 7.2% autocallable reverse convertible notes due Feb. 13, 2013 linked to the worst-performing of Apple Inc. and Microsoft Corp., according to a 424B2 filing with the Securities and Exchange Commission.
Interest is payable monthly.
The notes will be automatically called at par if both stocks close at or above their initial share prices on any monthly call date.
If the notes are not called and either stock finishes below its barrier price, 65% of its initial price, then the payout at maturity will be a number of shares of the worst-performing stock equal to $1,000 divided by that stock's initial share price or, at RBC's option, a cash amount equal to the value of those shares. Otherwise, the payout will be par.
RBC Capital Markets, LLC is the agent.
| Issuer: | Royal Bank of Canada
|
| Issue: | Autocallable reverse convertible notes
|
| Underlying stocks: | Apple Inc. (Nasdaq: AAPL) and Microsoft Corp. (Nasdaq: MSFT)
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| Amount: | $4 million
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| Maturity: | Feb. 13, 2013
|
| Coupon: | 7.2%, payable monthly
|
| Price: | Par
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| Payout at maturity: | If either stock's final share price is less than its barrier price, a number of shares of the worst-performing stock equal to $1,000 divided by that stock's initial share price or an equivalent amount in cash; otherwise, par
|
| Call: | Automatically at par if both stocks close at or above their initial share prices on March 8, 2012, April 9, 2012, May 8, 2012, June 8, 2012, July 9, 2012, Aug. 8, 2012, Sept. 10, 2012, Oct. 8, 2012, Nov. 8, 2012, Dec. 10, 2012 or Jan. 8, 2013
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| Initial share prices: | $476.68 for Apple and $30.66 for Microsoft
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| Barrier prices: | $309.84 for Apple and $19.93 for Microsoft; 65% of initial share prices
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| Pricing date: | Feb. 8
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| Settlement date: | Feb. 13
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| Agent: | RBC Capital Markets, LLC
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| Fees: | 0.5%
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| Cusip: | 78008TS88
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