Published on 5/15/2012 in the Prospect News Structured Products Daily.
New Issue: RBC prices $400,000 8.7% reverse convertibles linked to Hartford Financial
New York, May 15 - Royal Bank of Canada priced $400,000 of 8.7% reverse convertible notes due May 16, 2013 linked to Hartford Financial Services Group, Inc. shares, according to a 424B2 filing with the Securities and Exchange Commission.
The payout at maturity will be par in cash unless Hartford Financial shares fall below the protection price of $14.90, 75% of the initial price of $19.87, during the life of the notes and finish below the initial price in which case the payout will be Hartford Financial shares equal to $1,000 principal amount divided by the initial 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: | Hartford Financial Services Group, Inc. (Symbol: HIG)
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Amount: | $400,000
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Maturity: | May 16, 2013
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Coupon: | 8.7%, payable monthly
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Price: | Par
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Payout at maturity: | Par in cash unless Hartford Financial shares fall below the protection price of $14.90, 75% of the initial price, and finish below the initial price, in which case Hartford Financial shares equal to $1,000 principal amount divided by the initial price
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Initial price: | $19.87
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Protection price: | $14.90, 75% of $19.87
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Pricing date: | May 11
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Settlement date: | May 16
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Agent: | RBC Capital Markets Corp.
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Fees: | 2.5%
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Cusip: | 78008T7G3
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