Published on 4/27/2007 in the Prospect News Structured Products Daily.
New Issue: RBC sells $736,000 8% reverse convertibles linked to Home Depot
By E. Janene Geiss
Philadelphia, April 27 - Royal Bank of Canada priced $736,000 of 8% reverse convertible notes due April 30, 2008 linked to The Home Depot, Inc. stock, according to a 424B2 filing with the Securities and Exchange Commission.
Payout at maturity will be par in cash if Home Depot stock stays at or above the protection price, 80% of the initial share price of $39.50, during the life of the notes and finishes at or above the initial share price.
Otherwise, the payout will be in Home Depot 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
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Issue: | Reverse convertible notes
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Underlying stock: | The Home Depot, Inc.
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Amount: | $736,000
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Maturity: | April 30, 2008
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Coupon: | 8%
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Price: | Par
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Payout at maturity: | Par in cash if Home Depot stock stays at or above the protection price of $39.50 during the life of the notes and finishes at or above the initial share price; otherwise, 25.316 Home Depot shares
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Initial share price: | $39.50
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Protection price: | $31.60, 80% of $39.50
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Pricing date: | April 25
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Settlement date: | April 30
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Agent: | RBC Capital Markets Corp.
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Agent's fee: | 2%
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