By Laura Lutz
Des Moines, Dec. 31 - Royal Bank of Canada priced a $2.47 million issue of 20.75% reverse convertible notes due March 31, 2008 linked to Freeport-McMoRan Copper & Gold, Inc. stock, according to a 424B2 filing with the Securities and Exchange Commission.
Interest will be payable monthly.
If Freeport-McMoRan stock stays at or above the protection price, 70% of the initial price of $103.91, during the life of the notes and finishes at or above the initial price, the payout will be a number of Freeport-McMoRan shares equal to par divided by the initial price.
Otherwise, the payout will be par in cash.
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: | $2,469,000
|
| Maturity: | March 31, 2008
|
| Coupon: | 20.75%
|
| Price: | Par
|
| Payout at maturity: | Par in cash if Freeport-McMoRan stock stays at or above the protection price of $72.74 or finishes at or above the initial price; otherwise shares of Freeport-McMoRan stock equal to par divided by the initial price
|
| Initial price: | $103.91
|
| Protection price: | $72.74, 70% of $103.91
|
| Pricing date: | Dec. 27
|
| Settlement date: | Dec. 31
|
| Agent: | RBC Capital Markets Corp.
|
| Fees: | 1.5%
|
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