Published on 3/23/2012 in the Prospect News Structured Products Daily.
New Issue: RBC prices $1.2 million 9.12% autocallable RevCons tied to GE, Caterpillar
By Angela McDaniels
Tacoma, Wash., March 23 - Royal Bank of Canada priced $1.2 million of 9.12% autocallable reverse convertible notes due March 26, 2013 linked to the worst-performing of General Electric Co. and Caterpillar Inc., 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, 60% 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
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| Issue: | Autocallable reverse convertible notes
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| Underlying stocks: | General Electric Co. (Symbol: GE) and Caterpillar Inc. (Symbol: CAT)
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| Amount: | $1.2 million
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| Maturity: | March 26, 2013
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| Coupon: | 9.12%, payable monthly
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| 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 April 21, 2012, May 21, 2012, June 21, 2012, July 21, 2012, Aug. 21, 2012, Sept. 21, 2012, Oct. 21, 2012, Nov. 21, 2012, Dec. 21, 2012, Jan. 21, 2013 or Feb. 21, 2013
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| Initial share prices: | $20.07 for GE and $109.00 for Caterpillar
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| Barrier prices: | $12.04 for GE and $65.40 for Caterpillar; 60% of initial share prices
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| Pricing date: | March 21
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| Settlement date: | March 26
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| Agent: | RBC Capital Markets, LLC
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| Fees: | 0.5%
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| Cusip: | 78008T3A0
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