By Jennifer Chiou
New York, Oct. 7 – Royal Bank of Canada priced $6.1 million of 11.25% issuer callable reverse convertible notes due Oct. 19, 2015 linked to the worst performing of Baker Hughes Inc., Chevron Corp. and the Halliburton Co., according to a 424B2 filing with the Securities and Exchange Commission.
Interest is payable at maturity.
The notes will be called at par plus accrued interest if each stock closes at or above its initial price on any trading day beginning on Feb. 3, 2015.
If the notes are not called, the payout at maturity will be par in cash unless the price of any stock falls below its barrier price, 70% of its initial price, during the life of the notes and finishes below its initial price, in which case the payout will be a number of shares of the worst-performing stock equal to $1,000 divided by the initial price.
The initial estimated value of the notes as of the pricing date is $959.10 per $1,000 principal amount, which is less than the par price to the public.
RBC Capital Markets, LLC is the agent.
| Issuer: | Royal Bank of Canada
|
| Issue: | Issuer callable reverse convertible notes
|
| Underlying stocks: | Baker Hughes Inc. (Symbol: BHI), Chevron Corp. (Symbol: CVX) and Halliburton Co. (Symbol: HAL)
|
| Amount: | $6.1 million
|
| Maturity: | Oct. 19, 2015
|
| Coupon: | 11.25%, payable at maturity
|
| Price: | Par
|
| Payout at maturity: | Par in cash unless any stock finishes below barrier price during the life of the notes and finishes below its initial price, in which case number of shares of the worst-performing stock equal to $1,000 divided by the initial price
|
| Call: | At par plus accrued interest on any trading day beginning on Feb. 3, 2015 if each stock closes at or above initial price
|
| Initial prices: | $61.69 for Baker Hughes, $117.71 for Chevron, $61.86 for Halliburton
|
| Barrier prices: | $43.18 for Baker Hughes, $82.40 for Chevron, $43.30 for Halliburton, 70% of initial price
|
| Pricing date: | Oct. 3
|
| Settlement date: | Oct. 17
|
| Agent: | RBC Capital Markets, LLC
|
| Fees: | None
|
| Cusip: | 78010UH42
|
|
|
© 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.
