By Susanna Moon
Chicago, Nov. 29 - Royal Bank of Canada priced $20 million of 0% autocallable optimization securities with contingent protection due Dec. 1, 2011 based on Ford Motor Co. shares, according to a 424B2 filing with the Securities and Exchange Commission.
If the stock closes at or above its initial price on any of 12 monthly observation dates, the notes will be called and investors will receive par of $10 plus an annualized return of 21.5%.
If the notes are not called and Ford stock finishes at or above 70% of its initial share price, the payout at maturity will be par. Otherwise, investors will receive par plus the stock return.
UBS Financial Services Inc. and RBC Capital Markets Corp. are the agents.
| Issuer: | Royal Bank of Canada
|
| Issue: | Autocallable optimization securities with contingent protection
|
| Underlying stock: | Ford Motor Co. (Symbol: F)
|
| Amount: | $19,999,690
|
| Maturity: | Dec. 1, 2011
|
| Coupon: | 0%
|
| Price: | Par of $10.00
|
| Payout at maturity: | If final share price is greater than or equal to trigger price of $11.17, par; otherwise, par plus stock return
|
| Call: | Automatically at par plus annualized call premium of 21.5% if Ford stock closes at or above initial share price on any of 12 monthly observation dates
|
| Initial share price: | $15.95
|
| Trigger price: | $11.17, or 70% of initial share price
|
| Pricing date: | Nov. 24
|
| Settlement date: | Nov. 30
|
| Underwriters: | UBS Financial Services Inc. and RBC Capital Markets Corp.
|
| Fees: | 1.25%
|
| Cusip: | 78009C464
|
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