RBC plans to price 11.75% reverse convertibles linked to Frontier Oil

By Angela McDaniels

Tacoma, Wash., May 21 - Royal Bank of Canada plans to price reverse convertible notes due Aug. 31, 2009 linked to the common stock of Frontier Oil Corp., according to a 424B2 filing with the Securities and Exchange Commission.

The three-month notes will carry an annualized coupon of 11.75%. Interest will be payable monthly.

The payout at maturity will be par unless Frontier Oil stock falls below the barrier price - 65% 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 Frontier Oil shares equal to $1,000 divided by the initial share price or, at RBC's option, the value of those shares in cash.

The notes will price May 26 and settle May 29.

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.