By Laura Lutz
Des Moines, July 30 - Royal Bank of Canada priced $559,000 of 12.5% reverse convertible notes due Jan. 31, 2008 linked to General Motors Corp. stock, according to a 424B2 filing with the Securities and Exchange Commission.
Interest is payable monthly.
Payout at maturity will be par in cash if General Motors stock stays at or above the protection price, 70% of the initial price of $32.20, during the life of the notes or finishes at or above the initial price.
Otherwise, the payout will be in General Motors 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: | General Motors Corp. (Symbol: GM)
|
| Amount: | $559,000
|
| Maturity: | Jan. 31, 2008
|
| Coupon: | 12.5%, payable monthly
|
| Price: | Par
|
| Payout at maturity: | Par in cash if General Motors stock stays at or above the protection price of $22.54 or finishes at or above the initial price; otherwise shares of General Motors stock equal to $1,000 divided by the initial price
|
| Initial price: | $32.20
|
| Protection price: | $22.54, 70% of $32.20
|
| Pricing date: | July 26
|
| Settlement date: | July 31
|
| Agent: | RBC Capital Markets Corp.
|
| Fees: | 2%
|
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