Published on 2/19/2008 in the Prospect News Structured Products Daily.
New Issue: RBC prices $316,000 17% reverse convertibles linked to Tiffany
By Susanna Moon
Chicago, Feb. 19 - Royal Bank of Canada priced $316,000 of 17% reverse convertible notes due Aug. 20, 2008 linked to Tiffany & Co. stock, according to a 424B2 filing with the Securities and Exchange Commission.
Interest is payable monthly.
If Tiffany stock falls below the protection price - 70% of the initial price - during the life of the notes and finishes below the initial price, the payout at maturity will be a number of Tiffany shares equal to par divided by the initial price.
Otherwise, investors will receive par in cash.
RBC Capital Markets Corp. is the agent.
Issuer: | Royal Bank of Canada
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Issue: | Reverse convertible notes
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Underlying stock: | Tiffany & Co. (NYSE: TIF)
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Amount: | $316,000
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Maturity: | Aug. 20, 2008
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Coupon: | 17%, payable monthly
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Price: | Par
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Payout at maturity: | If Tiffany stock falls below protection price during life of notes and finishes below initial price, a number of Tiffany shares equal to par divided by initial price; otherwise, par in cash
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Initial share price: | $38.52
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Protection price: | $26.96, 70% of initial price
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Pricing date: | Feb. 15
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Settlement date: | Feb. 20
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Agent: | RBC Capital Markets Corp.
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Fees: | 2.25%
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