By Laura Lutz
Des Moines, Feb. 28 - Royal Bank of Canada priced $3.62 million of 10% bundled reverse convertible notes due Feb. 27, 2009 linked to the current components of the Dow Jones High Yield Select 10 index, according to a 424B2 filing with the Securities and Exchange Commission.
The components are the common stocks of Altria Group, Inc.; AT&T Inc.; Citigroup Inc.; E. I. Dupont de Nemours and Co.; General Electric Co.; General Motors Corp.; Home Depot, Inc.; JPMorgan Chase & Co.; Pfizer Inc.; and Verizon Communications Inc.
Interest will be payable monthly.
The payout at maturity will be equal to the sum of the 10 component payouts.
For each stock that stays at or above its knock-in level - 75% of its initial level - during the life of the notes or finishes at or above its initial level, the component payout will be 10% of par
For each stock that falls below its knock-in level and finishes below its initial level, the component payout will be a number of shares of that stock equal to 10% of par divided by its initial price, or the equivalent in cash.
RBC Capital Markets Corp. is the agent.
| Issuer: | Royal Bank of Canada
|
| Issue: | Bundled reverse convertible notes
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| Underlying stocks: | Current components of Dow Jones High Yield Select 10 index: Altria Group, Inc. (Symbol: MO); AT&T Inc. (Symbol: T); Citigroup Inc. (Symbol: C); E. I. Dupont de Nemours and Co. (Symbol: DD); General Electric Co. (Symbol: GE); General Motors Corp. (Symbol: GM); Home Depot, Inc. (Symbol: HD); JPMorgan Chase & Co. (Symbol: JPM); Pfizer Inc. (Symbol: PFE); and Verizon Communications Inc. (Symbol: VZ)
|
| Amount: | $3.62 million
|
| Maturity: | Feb. 27, 2009
|
| Coupon: | 10%, paid monthly
|
| Price: | Par
|
| Payout at maturity: | Sum of 10 component payouts; for each stock that falls below its knock-in level and finishes below its initial level, component payout will be 10% of par divided by its initial level; for other stocks, component payout will be 10% of par
|
| Knock-in levels: | 75% of initial levels
|
| Pricing date: | Feb. 26
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| Settlement date: | Feb. 29
|
| Agent: | RBC Capital Markets Corp.
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| Fees: | 2.75%
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