By Susanna Moon
Chicago, May 10 - Royal Bank of Canada priced $18.78 million of 0% trigger autocallable optimization securities due May 10, 2012 linked to Potash Corp. of Saskatchewan Inc. shares, according to a 424B2 filing with the Securities and Exchange Commission.
If the stock closes at or above the initial price on any monthly observation date, the notes will be called at par of $10 plus an annualized call return of 20.1%.
The payout at maturity will be par if Potash shares finish at or above the trigger price, which is 80% of the initial share price.
Otherwise, investors will be exposed to any losses.
UBS Financial Services Inc. and RBC Capital Markets, LLC are the underwriters.
| Issuer: | Royal Bank of Canada
|
| Issue: | Trigger autocallable optimization securities
|
| Underlying stock: | Potash Corp. of Saskatchewan Inc. (NYSE: POT)
|
| Amount: | $18,778,790
|
| Maturity: | May 10, 2012
|
| Coupon: | 0%
|
| Price: | Par of $10
|
| Payout at maturity: | If Potash shares finish at or above the trigger price, par; otherwise, exposure to losses
|
| Call option: | At par plus 20.1% per year if shares close at or above initial price on any monthly observation date
|
| Initial share price: | $53.45
|
| Trigger price: | $42.76, 80% of initial share price
|
| Pricing date: | May 6
|
| Settlement date: | May 11
|
| Underwriters: | UBS Financial Services Inc. and RBC Capital Markets, LLC
|
| Fees: | 1.25%
|
| Cusip: | 78009C217
|
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