Published on 4/3/2007 in the Prospect News Structured Products Daily.
New Issue: RBC sells $1.175 million 11.25% reverse convertibles linked to USG
By Laura Lutz
Des Moines, April 3 - Royal Bank of Canada priced $1.175 million of 11.25% reverse convertible notes due Oct. 4, 2007 linked to USG Corp. stock, according to a 424B2 filing with the Securities and Exchange Commission.
Payout at maturity will be par in cash if USG stock stays at or above the protection price, 80% of the initial price of $46.68, during the life of the notes and finishes at or above the initial price.
Otherwise, the payout will be in USG stock, with the number of shares equal to $1,000 divided by the initial share price.
Issuer: | Royal Bank of Canada
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Issue: | Reverse convertible notes
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Underlying stock: | USG Corp.
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Amount: | $1.175 million
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Maturity: | Oct. 4, 2007
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Coupon: | 11.25%
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Price: | Par
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Payout at maturity: | Par in cash if USG stock stays at or above the protection price of $37.34 and finishes at or above the initial price; otherwise shares of USG stock equal to $1,000 divided by the initial price
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Initial price: | $46.68
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Protection price: | $37.34, 80% of $46.68
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Pricing date: | March 30
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Settlement date: | April 4
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Agent: | RBC Capital Markets Corp.
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Agent fee: | 1.25%
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