By Angela McDaniels
Tacoma, Wash., March 11 - Royal Bank of Canada priced $3.5 million of 0% autocallable optimization securities with contingent protection due March 15, 2011 linked to the common stock of General Electric Co., according to a 424B2 filing with the Securities and Exchange Commission.
If GE stock closes at or above the initial share price on any of 12 monthly observation dates, the notes will be called automatically and investors will receive par of $10 plus an annualized call premium of 16.8%.
The observation dates are April 9, 2010, May 10, 2010, June 9, 2010, July 9, 2010, Aug. 9, 2010, Sept. 9, 2010, Oct. 12, 2010, Nov. 9, 2010, Dec. 9, 2010, Jan. 10, 2011, Feb. 9, 2011 and March 9, 2011.
If the notes are not called, the payout at maturity will be par if the final share price is greater than or equal to 75% of the initial share price. Otherwise, investors will be exposed to the share price decline.
UBS Financial Services Inc. and RBC Capital Markets Corp. are the agents.
| Issuer: | Royal Bank of Canada
|
| Issue: | Autocallable optimization securities with contingent protection
|
| Underlying stock: | General Electric Co. (NYSE: GE)
|
| Amount: | $3.5 million
|
| Maturity: | March 15, 2011
|
| Coupon: | 0%
|
| Price: | Par of 10.00
|
| Payout at maturity: | If final share price is greater than or equal to trigger price, par; otherwise, par plus stock return
|
| Call: | Automatically at par plus annualized call premium of 16.8% if GE stock closes at or above initial share price on any of 12 monthly observation dates
|
| Initial share price: | $16.49
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| Trigger price: | $12.37, 75% of initial share price
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| Pricing date: | March 9
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| Settlement date: | March 12
|
| Agents: | UBS Financial Services Inc. and RBC Capital Markets Corp.
|
| Fees: | 1.25%
|
| Cusip: | 78009C787
|
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