Published on 8/20/2014 in the Prospect News Structured Products Daily.
New Issue: RBC sells $880,000 8.6% six-month reverse convertibles tied to Facebook
By Susanna Moon
Chicago, Aug. 20 – Royal Bank of Canada priced $880,000 of 8.6% annualized reverse convertible notes due Feb. 20, 2015 linked to Facebook, Inc. shares, according to a 424B2 filing with the Securities and Exchange Commission.
The payout at maturity will be par in cash unless Facebook shares fall below the buffer level, 65% of the initial price, during the life of the notes and finish below the initial price in which case the payout will be a number of Facebook shares equal to $1,000 divided by the initial share price.
RBC Capital Markets, LLC is the agent.
Issuer: | Royal Bank of Canada
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Issue: | Reverse convertible notes
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Underlying stock: | Facebook, Inc. (Symbol: FB)
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Amount: | $880,000
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Maturity: | Feb. 20, 2015
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Coupon: | 8.6% annualized, payable monthly
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Price: | Par
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Payout at maturity: | Par in cash unless Facebook shares ever fall below the buffer level during life of notes and finish below the initial price, in which case 13.5814 Facebook shares
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Initial level: | $73.63
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Buffer level: | $55.22, 75% of initial level
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Exchange ratio: | 13.5814
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Pricing date: | Aug. 15
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Settlement date: | Aug. 20
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Agent: | RBC Capital Markets, LLC
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Fees: | 1.5%
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Cusip: | 78010UV20
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