By Susanna Moon
Chicago, Dec. 31 - Royal Bank of Canada priced a $1.66 million issue of 37.9% reverse convertible notes due March 31, 2008 linked to the common stock of Fannie Mae, according to a 424B2 filing with the Securities and Exchange Commission.
Interest is payable monthly.
The payout at maturity will be par unless the stock falls by more than 25% during the life of the notes and finishes below the initial share price, in which case the payout will be a number of Fannie Mae shares equal to $1,000 divided by the initial share price, or, at the bank's option, the equivalent cash value. Fractional shares will be paid in cash.
RBC Capital Markets Corp. is the agent.
| Issuer: | Royal Bank of Canada
|
| Issue: | Reverse convertible notes
|
| Underlying stock: | Fannie Mae (NYSE: FNM)
|
| Amount: | $1.66 million
|
| Maturity: | March 31, 2008
|
| Coupon: | 37.9%, payable monthly
|
| Price: | Par
|
| Payout at maturity: | If the stock falls below the barrier price during the life of the notes and finishes below the initial share price, a number of Fannie Mae shares equal to $1,000 divided by the initial share price
|
| Initial share price: | $39.61
|
| Barrier price: | $29.71, or 75% of initial share price
|
| Pricing date: | Dec. 27
|
| Settlement date: | Dec. 31
|
| Agent: | RBC Capital Markets Corp.
|
| Fees: | 1.5%
|
© 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.
