By E. Janene Geiss
Philadelphia, Nov. 28 - Royal Bank of Canada priced a $400,000 issue of 13.5% reverse convertible notes due Nov. 28, 2008 linked to Ford Motor Co. 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 the stock stays at or above the protection price, 60% of the initial price, during the life of the notes or finishes at or above the initial price.
Otherwise, the payout will be in Ford 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: | Ford Motor Co. (Symbol: F)
|
| Amount: | $400,000
|
| Maturity: | Nov. 28, 2008
|
| Coupon: | 13.5%, payable monthly
|
| Price: | Par
|
| Payout at maturity: | Par in cash if the stock stays at or above the protection price of $4.22 during the life of the notes or finishes at or above the initial price; otherwise shares of Ford stock equal to $1,000 divided by the initial price
|
| Initial price: | $7.03
|
| Protection price: | $4.22, 60% of $7.03
|
| Pricing date: | Nov. 26
|
| Settlement date: | Nov. 30
|
| Agent: | RBC Capital Markets Corp.
|
| Fees: | 2%
|
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