Published on 4/29/2008 in the Prospect News Structured Products Daily.
New Issue: RBC prices $305,000 12% RevCons linked to Target
By E. Janene Geiss
Philadelphia, April 29 - Royal Bank of Canada priced $305,000 of 12% annualized reverse convertible notes (RevCons) due Oct. 31, 2008 linked to the common stock of Target Corp., according to a 424B2 filing with the Securities and Exchange Commission.
Interest is payable monthly.
The payout at maturity will be par unless Target stock falls by more than 30% during the life of the notes and finishes below the initial share price, in which case the payout will be a number of Target shares equal to $1,000 divided by the initial share price or, at the bank's option, the equivalent cash value.
RBC Capital Markets Corp. is the underwriter.
| Issuer: | Royal Bank of Canada
|
| Issue: | Reverse convertible notes (RevCons)
|
| Underlying stock: | Target Corp. (Symbol: TGT)
|
| Amount: | $305,000
|
| Maturity: | Oct. 31, 2008
|
| Coupon: | 12%, payable monthly
|
| Price: | Par
|
| Payout at maturity: | Par in cash if the stock stays at or above the protection price of $37.79 during the life of the notes or finishes at or above the initial price; otherwise shares of Target stock equal to $1,000 divided by the initial price
|
| Initial share price: | $53.98
|
| Barrier price: | $37.79, 70% of initial share price
|
| Pricing date: | April 25
|
| Settlement date: | April 30
|
| Underwriter: | RBC Capital Markets Corp.
|
| Fees: | 1.75%
|
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