New Issue: RBC prices $5.17 million 13.2% reverse convertibles linked to Facebook

By Toni Weeks

San Luis Obispo, Calif., Oct. 1 - Royal Bank of Canada priced $5.17 million of reverse convertible notes due April 1, 2014 linked to the common stock of Facebook, Inc., according to a 424B2 filing with the Securities and Exchange Commission.

The six-month notes carry an annualized coupon of 13.2%. Interest is payable monthly.

The payout at maturity will be par unless Facebook stock closes below the downside threshold price, 80% of the initial share price, on the March 27, 2014 valuation date, in which case the payout will be a number of Facebook shares equal to $10.00 divided by the initial share price or, at RBC's option, the value of those shares in cash.

RBC Capital Markets LLC is the agent.

Issuer:	Royal Bank of Canada
Issue:	Reverse convertible notes
Underlying stock:	Facebook, Inc. (Symbol: FB)
Amount:	$5,169,640
Maturity:	April 1, 2014
Coupon:	13.2%, payable monthly
Price:	Par of $10.00
Payout at maturity:	Par unless Facebook stock finishes below downside threshold on March 27, 2014, in which case 0.1952 Facebook shares or, at RBC's option, the cash value of those shares
Initial share price:	$51.24
Downside threshold:	$40.99, 80% of initial share price
Pricing date:	Sept. 27
Settlement date:	Oct. 2
Agent:	RBC Capital Markets LLC
Fees:	1.5%
Cusip:	78009Q505

© 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.