Published on 2/28/2008 in the Prospect News Structured Products Daily.
New Issue: RBC prices $17,000 13.5% reverse convertibles linked to D.R. Horton
By E. Janene Geiss
Philadelphia, Feb. 28 - Royal Bank of Canada priced a $17,000 issue of 13.5% annualized reverse convertible notes due May 29, 2008 linked to D.R. Horton, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
Interest is payable monthly.
Payout at maturity will be par in cash if the stock stays at or above the protection price, 60% of the initial price, during the life of the notes or finishes at or above the initial price.
Otherwise, the payout will be in D.R. Horton 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: | D.R. Horton, Inc. (Symbol: DHI)
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Amount: | $17,000
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Maturity: | May 29, 2008
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Coupon: | 13.5%, payable monthly
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Price: | Par
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Payout at maturity: | Par in cash if the stock stays at or above the protection price of $9.86 during the life of the notes or finishes at or above the initial price; otherwise, shares of D.R. Horton stock equal to $1,000 divided by the initial price
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Initial price: | $16.43
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Protection price: | $9.86, 60% of $16.43
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Pricing date: | Feb. 26
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Settlement date: | Feb. 29
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Agent: | RBC Capital Markets Corp.
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Fees: | 1.25%
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