RBC to price 11.5%-15% reverse convertibles linked to Caterpillar

By Angela McDaniels

Tacoma, Wash., July 22 - Royal Bank of Canada plans to price reverse convertible notes due Feb. 15, 2011 linked to the common stock of Caterpillar Inc., according to an FWP filing with the Securities and Exchange Commission.

The six-month notes will carry a coupon of 11.5% to 15% per year, with the exact coupon to be set at pricing. Interest will be payable monthly.

The payout at maturity will be par unless Caterpillar stock falls below 70% of its initial share price during the life of the notes and finishes below its initial price, in which case investors will receive a number of Caterpillar shares equal to $1,000 divided by the initial price or, at RBC's option, the value of those shares in cash.

The notes (Cusip: 78008KDY6) are expected to price Aug. 10 and settle Aug. 13.

RBC Capital Markets Corp. is the agent.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.