By Angela McDaniels
Tacoma, Wash., May 15 - Royal Bank of Canada priced $1.13 million of trigger phoenix autocallable optimization securities due May 16, 2013 linked to the registered shares of Foster Wheeler AG, according to a 424B2 filing with the Securities and Exchange Commission.
If Foster Wheeler stock closes at or above the trigger price - 65% of the initial share price - on a quarterly observation date, the issuer will pay a contingent coupon for that quarter at the rate of 14.85% per year. Otherwise, no coupon will be paid that quarter.
If the shares close at or above the initial price on a quarterly observation date, the notes will be called at par of $10 plus the contingent coupon.
If the notes are not called and Foster Wheeler shares finish at or above the trigger price, the payout at maturity will be par plus the contingent coupon. Otherwise, investors will be exposed to the share price decline from the initial price.
UBS Financial Services Inc. and RBC Capital Markets, LLC are the underwriters.
| Issuer: | Royal Bank of Canada
|
| Issue: | Trigger phoenix autocallable optimization securities
|
| Underlying stock: | Foster Wheeler AG (Symbol: FWLT)
|
| Amount: | $1,133,800
|
| Maturity: | May 16, 2013
|
| Coupon: | 14.85% per year, payable quarterly if stock closes at or above trigger price on observation date for that quarter
|
| Price: | Par of $10.00
|
| Payout at maturity: | Par plus contingent coupon if Foster Wheeler shares finish at or above trigger price; otherwise, par plus stock return
|
| Call: | Automatically at par plus contingent coupon if Foster Wheeler shares close at or above initial price on a quarterly observation date
|
| Initial share price: | $21.30
|
| Trigger price: | $13.85, 65% of initial share price
|
| Pricing date: | May 11
|
| Settlement date: | May 17
|
| Underwriters: | UBS Financial Services Inc. and RBC Capital Markets, LLC
|
| Fees: | 1.5%
|
| Cusip: | 78008C465
|
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