Published on 12/31/2008 in the Prospect News Structured Products Daily.
New Issue: RBC prices $1.65 million 16.4% reverse convertibles linked to Frontline
By Susanna Moon
Chicago, Dec. 27 - Royal Bank of Canada priced a $1.65 million issue of 16.4% reverse convertible notes due June 30, 2008 linked to the common stock of Frontline Ltd., according to a 424B2 filing with the Securities and Exchange Commission.
Interest is payable monthly.
The payout at maturity will be par unless Frontline stock falls by more than 40% during the life of the notes and finishes below the initial share price, in which case the payout will be a number of Frontline shares equal to $1,000 divided by the initial share price.
RBC Capital Markets Corp. is the agent.
Issuer: | Royal Bank of Canada
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Issue: | Reverse convertible notes
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Underlying stock: | Frontline Ltd. (NYSE: FRO)
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Amount: | $1,649,000
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Maturity: | June 30, 2008
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Coupon: | 16.4%, payable monthly
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Price: | Par
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Payout at maturity: | If Frontline shares close below the barrier price during the life of the notes and the final share price is less than the initial share price, a number of Frontline shares equal to $1,000 divided by the initial share price; otherwise, par
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Initial share price: | $47.51
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Barrier price: | $28.51, or 60% of initial share price
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Pricing date: | Dec. 26
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Settlement date: | Dec. 31
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Agent: | RBC Capital Markets Corp.
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Fees: | 1.55%
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