By Susanna Moon
Chicago, July 29 - Royal Bank of Canada priced $5.72 million of trigger phoenix autocallable optimization securities due July 27, 2012 linked to CSX Corp. shares, according to a 424B2 filing with the Securities and Exchange Commission.
If CSX stock closes at or above the trigger price - 80% of the initial share price - on a quarterly observation date, the issuer will pay a contingent coupon of 12.93%.
If the stock closes at or above the initial price on any observation date, the notes will be called at par of $10 plus the contingent coupon.
The payout at maturity will be par if the notes are not called and CSX shares finish at or above the trigger price.
If the shares finish below the trigger price, investors will be fully exposed to the decline.
UBS Financial Services Inc. and RBC Capital Markets, LLC are the underwriters.
| Issuer: | Royal Bank of Canada
|
| Issue: | Trigger phoenix autocallable optimization securities
|
| Underlying stock: | CSX Corp. (NYSE: CSX)
|
| Amount: | $5,718,490
|
| Maturity: | July 27, 2012
|
| Coupon: | 12.93% if CSX stock closes at or above the trigger price on any of four quarterly observation dates
|
| Price: | Par of $10.00
|
| Payout at maturity: | If CSX shares finish at or above the trigger price, par; otherwise, exposure to losses
|
| Call option: | At par plus contingent coupon if share price is at or above initial price on any quarterly observation date
|
| Initial share price: | $24.68
|
| Trigger price: | $19.74, or 80% of initial share price
|
| Pricing date: | July 27
|
| Settlement date: | July 29
|
| Underwriters: | UBS Financial Services Inc. and RBC Capital Markets, LLC
|
| Fees: | 1.5%
|
| Cusip: | 78010T787
|
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