By Laura Lutz
Des Moines, April 18 - Royal Bank of Canada priced $1 million of 17.75% reverse convertible notes due Oct. 22, 2007 linked to the First Marblehead Corp. stock, according to a 424B2 filing with the Securities and Exchange Commission.
Payout at maturity will be par in cash if First Marblehead stock stays at or above the protection price, 70% of the initial share price of $36.65, during the life of the notes and finishes at or above the initial share price.
Otherwise, the payout will be in First Marblehead 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
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Issue: | Reverse convertible notes
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Underlying stock: | The First Marblehead Corp.
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Amount: | $1 million
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Maturity: | Oct. 22, 2007
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Coupon: | 17.75%
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Price: | Par
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Payout at maturity: | Par in cash if First Marblehead stock stays at or above the protection price of $25.66 during the life of the notes and finishes at or above the initial share price; otherwise, 27.28513 First Marblehead shares
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Initial share price: | $36.65
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Protection price: | $25.66, 70% of $36.65
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Pricing date: | April 17
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Settlement date: | April 20
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Agent: | RBC Capital Markets Corp.
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Agent's fee: | 1.25%
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