By Susanna Moon
Chicago, April 21 - Royal Bank of Canada priced $3 million of 30% reverse convertible notes due July 25, 2008 linked to the common stock of Frontier Oil Corp., according to a 424B2 filing with the Securities and Exchange Commission.
Interest will be payable monthly.
If Frontier Oil stock falls below the knock-in price - 80% of the initial share price - during the life of the notes and finishes below the initial price, the payout at maturity will be a number of Frontier Oil shares equal to par divided by the initial price.
Otherwise, the payout will be par.
RBC Capital Markets Corp. will be the agent.
| Issuer: | Royal Bank of Canada
|
| Issue: | Reverse convertible notes
|
| Underlying stock: | Frontier Oil Corp. (Symbol: FTO)
|
| Amount: | $3 million
|
| Maturity: | July 25, 2008
|
| Coupon: | 30%, payable monthly
|
| Price: | Par
|
| Payout at maturity: | If the stock falls below the barrier price during the life of the notes and finishes below the initial share price, a number of Frontier shares equal to $1,000 divided by the initial price; otherwise, par
|
| Initial share price: | $26.73
|
| Barrier price: | $21.38, or 80% of initial share price
|
| Pricing date: | April 18
|
| Settlement date: | April 25
|
| Agent: | RBC Capital Markets Corp.
|
| Fees: | 1.25%
|
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