By E. Janene Geiss
Philadelphia, April 27 - Royal Bank of Canada priced $442,000 of reverse convertible notes due Oct. 30, 2007 linked to the Ford Motor Co. stock, according to a 424B2 filing with the Securities and Exchange Commission.
The six-month notes will pay 6.125% for an annualized coupon of 12.25%.
Payout at maturity will be par in cash if Ford stock stays at or above the protection price, 70% of the initial share price of $7.88, during the life of the notes and finishes at or above the initial share 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.
|
| Amount: | $442,000
|
| Maturity: | Oct. 30, 2007
|
| Coupon: | 12.25%
|
| Price: | Par
|
| Payout at maturity: | Par in cash if Ford stock stays at or above the protection price of $5.52 during the life of the notes and finishes at or above the initial share price; otherwise, 126.90 Ford shares
|
| Initial share price: | $7.88
|
| Protection price: | $5.52, 70% of $7.88
|
| Pricing date: | April 25
|
| Settlement date: | April 30
|
| Agent: | RBC Capital Markets Corp.
|
| Agent's fee: | 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.
