New Issue: RBC sells $434,000 13.5% reverse convertibles linked to Freeport-McMoRan

By E. Janene Geiss

Philadelphia, Feb. 27 - Royal Bank of Canada priced $434,000 of 13.5% reverse convertible notes due Feb. 28, 2008 linked to Freeport-McMoRan Copper & Gold, Inc. stock, according to a 424B2 filing with the Securities and Exchange Commission.

The payout at maturity will be par in cash if Freeport-McMoRan stock stays at or above the protection price - 80% of the initial share price of $59.91 - during the life of the notes and finishes at or above the initial share price.

Otherwise, the payout will be in Freeport-McMoRan stock, with the number of shares equal to $1,000 divided by the initial share price.

Issuer:	Royal Bank of Canada
Issue:	Reverse convertible notes
Underlying stock:	Freeport-McMoRan Copper & Gold, Inc.
Amount:	$434,000
Maturity:	Feb. 28, 2008
Coupon:	13.5%, payable quarterly
Price:	Par
Payout at maturity:	Par in cash if Freeport-McMoRan stock stays at or above the protection price of $47.93 and finishes at or above the initial share price; otherwise, 16.692 shares of Freeport-McMoRan stock
Initial share price:	$59.91
Protection price:	$47.93, 80% of $59.91
Pricing date:	Feb. 23
Settlement date:	Feb. 28
Agent:	RBC Capital Markets Corp.
Agent fees:	2%

© 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.