By Laura Lutz
Des Moines, Oct. 24 - Royal Bank of Canada priced a $1 million issue of 25% reverse convertible notes due April 25, 2008 linked to D.R. Horton, Inc. stock, according to a 424B2 filing with the Securities and Exchange Commission.
Interest is payable monthly.
Payout at maturity will be par in cash if D.R. Horton stock stays at or above the protection price, 60% of the initial price of $12.77, during the life of the notes or finishes at or above the initial price.
Otherwise, the payout will be in D.R. Horton 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: | D.R. Horton, Inc. (Symbol: DHI)
|
| Amount: | $1 million
|
| Maturity: | April 25, 2008
|
| Coupon: | 25%, payable monthly
|
| Price: | Par
|
| Payout at maturity: | Par in cash if D.R. Horton stock stays at or above the protection price of $7.66 during the life of the notes or finishes at or above the initial price; otherwise shares of D.R. Horton stock equal to $1,000 divided by the initial price
|
| Initial price: | $12.77
|
| Protection price: | $7.66, 60% of $12.77
|
| Pricing date: | Oct. 22
|
| Settlement date: | Oct. 25
|
| Agent: | RBC Capital Markets Corp.
|
| Fees: | 1%
|
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