By Laura Lutz
Des Moines, July 30 - Royal Bank of Canada priced $786,000 of 10.25% reverse convertible notes due Oct. 31, 2007 linked to Freeport-McMoRan Copper & Gold, Inc. 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 Freeport-McMoRan stock stays at or above the protection price, 70% of the initial price of $89.74, during the life of the notes or finishes at or above the initial 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.
RBC Capital Markets Corp. is the agent.
| Issuer: | Royal Bank of Canada
|
| Issue: | Reverse convertible notes
|
| Underlying stock: | Freeport-McMoRan Copper & Gold, Inc. (Symbol: FCX)
|
| Amount: | $786,000
|
| Maturity: | Oct. 31, 2007
|
| Coupon: | 10.25%, payable monthly
|
| Price: | Par
|
| Payout at maturity: | Par in cash if Freeport-McMoRan stock stays at or above the protection price of $62.82 or finishes at or above the initial price; otherwise shares of Freeport-McMoRan stock equal to $1,000 divided by the initial price
|
| Initial price: | $89.74
|
| Protection price: | $62.82, 70% of $89.74
|
| Pricing date: | July 26
|
| Settlement date: | July 31
|
| Agent: | RBC Capital Markets Corp.
|
| Fee: | 1.75%
|
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