By E. Janene Geiss
New York, May 30 - Royal Bank of Canada priced $213,000 of reverse convertible notes due Aug. 31, 2007 linked to Cree, Inc. stock, according to a 424B2 filing with the Securities and Exchange Commission.
The three-month notes will pay 3.5% for an annualized rate of 14%.
Payout at maturity will be par in cash if Cree stock stays at or above the protection price, 80% of the initial share price of $22.25, during the life of the notes or finishes at or above the initial share price.
Otherwise, the payout will be in Cree stock, with the number of shares equal to $1,000 divided by the initial share price.
RBC Capital Markets Corp. is the agent.
| Issuer: | Royal Bank of Canada
|
| Issue: | Reverse convertible notes
|
| Underlying stock: | Cree, Inc.
|
| Amount: | $213,000
|
| Maturity: | Aug. 31, 2007
|
| Coupon: | 14% annualized, payable quarterly
|
| Price: | Par
|
| Payout at maturity: | Par in cash if Cree stock stays at or above the protection price of $17.80 during the life of the notes or finishes at or above the initial share price; otherwise, 44.944 Cree shares
|
| Initial share price: | $22.25
|
| Protection price: | $17.80, 80% of $22.25
|
| Pricing date: | May 25
|
| Settlement date: | May 31
|
| Agent: | RBC Capital Markets Corp.
|
| Fees: | 1.75%
|
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