By Laura Lutz
Des Moines, July 31 - Royal Bank of Canada priced $500,000 of 14% reverse convertible notes due Feb. 4, 2008 linked to Goldcorp Inc. 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 Goldcorp stock stays at or above the protection price, 75% of the initial price of $25.00, during the life of the notes or finishes at or above the initial price.
Otherwise, the payout will be in Goldcorp stock, with the number of shares equal to $1,000 divided by the initial price.
RBC Capital Markets Corp. is the agent.
| Issuer: | Royal Bank of Canada
|
| Issue: | Reverse convertible notes
|
| Underlying stock: | Goldcorp Inc. (Symbol: GG)
|
| Amount: | $500,000
|
| Maturity: | Feb. 4, 2008
|
| Coupon: | 14%, payable monthly
|
| Price: | Par
|
| Payout at maturity: | Par in cash if Goldcorp stock stays at or above the protection price of $18.75 or finishes at or above the initial price; otherwise shares of Goldcorp stock equal to $1,000 divided by the initial price
|
| Initial price: | $25.00
|
| Protection price: | $18.75, 75% of $25.00
|
| Pricing date: | July 27
|
| Settlement date: | Aug. 3
|
| Agent: | RBC Capital Markets Corp.
|
| Fees: | 1.5%
|
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