RBC to sell 10.5% reverse convertibles linked to Freeport-McMoRan

By Susanna Moon

Chicago, Jan. 21 - Royal Bank of Canada plans to price 10.5% annualized reverse convertible notes due May 6, 2010 based on the performance of Freeport-McMoRan Copper & Gold Inc. shares, according to a 424B2 filing with the Securities and Exchange Commission.

Interest will be payable monthly.

The payout at maturity will be par unless the stock falls below the barrier price - 75% of the initial share price - during the life of the notes and finishes below the initial share price, in which case the payout will be a number of Freeport-McMoRan shares equal to $1,000 divided by the initial share price or, at RBC's option, the cash equivalent.

The notes are expected to price on Feb. 3 and settle on Feb. 8.

RBC Capital Markets Corp. is the agent.

© 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.