By E. Janene Geiss
Philadelphia, Oct. 30 - Royal Bank of Canada priced $1.41 million of reverse convertible notes due Jan. 31, 2008 linked to Fuel Tech, Inc. stock, according to a 424B2 filing with the Securities and Exchange Commission.
The three-month notes will pay 6.3625% for an annualized rate of 25.45%. Interest is payable monthly.
Payout at maturity will be par in cash if the stock stays at or above the protection price, 70% of the initial price, during the life of the notes or finishes at or above the initial price.
Otherwise, the payout will be in Fuel Tech stock, with the number of shares equal to $1,000 divided by the initial share price.
RBC Capital Markets Corp. is the agent.
| Issuer: | Royal Bank of Canada
|
| Issue: | Reverse convertible notes
|
| Underlying stock: | Fuel Tech, Inc. (Symbol: FTEK)
|
| Amount: | $1,413,000
|
| Maturity: | Jan. 31, 2008
|
| Coupon: | 25.45%, payable monthly
|
| Price: | Par
|
| Payout at maturity: | Par in cash if the stock stays at or above the protection price during the life of the notes or finishes at or above the initial price; otherwise shares of Fuel Tech stock equal to $1,000 divided by the initial price
|
| Initial price: | $29.16
|
| Protection price: | $20.41, 70% of $29.16
|
| Pricing date: | Oct. 26
|
| Settlement date: | Oct. 31
|
| Agent: | RBC Capital Markets Corp.
|
| Fees: | 1.75%
|
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