By Marisa Wong
Madison, Wis., Feb. 2 - Royal Bank of Canada priced $2 million of 10.75% callable reverse convertible notes due Aug. 3, 2012 linked to the common stock of Citigroup 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 the closing share price is greater than or equal to the initial share price on any monthly call date.
If the notes are not called, the payout at maturity will be par in cash unless the final share price is less than 60% of the initial price, in which case the payout will be a number of Citigroup shares equal to $1,000 divided by the initial price or, at the issuer's option, the cash equivalent.
RBC Capital Markets LLC is the agent.
| Issuer: | Royal Bank of Canada
|
| Issue: | Callable reverse convertible notes
|
| Underlying stock: | Citigroup Inc. (Symbol: C)
|
| Amount: | $2 million
|
| Maturity: | Aug. 3, 2012
|
| Coupon: | 10.75%, payable monthly
|
| Price: | Par
|
| Payout at maturity: | Par in cash unless shares finish below barrier price, in which case 32.55 shares of Citigroup stock or cash equivalent
|
| Call: | Automatically at par if closing share price is greater than or equal to initial share price on any monthly call date
|
| Initial price: | $30.72
|
| Barrier price: | $18.43, or 60% of initial price
|
| Pricing date: | Jan. 31
|
| Settlement date: | Feb. 3
|
| Agent: | RBC Capital Markets LLC
|
| Fees: | 0.5%
|
| Cusip: | 78008TN91
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
