Published on 3/24/2014 in the Prospect News Structured Products Daily.
New Issue: RBC prices $726,000 8% reverse convertibles linked to Kansas City Southern
New York, March 24 - Royal Bank of Canada priced $726,000 of 8% reverse convertible notes due June 25, 2014 linked to Kansas City Southern shares, according to a 424B2 filing with the Securities and Exchange Commission.
The payout at maturity will be par in cash unless Kansas City Southern shares fall below the protection price of $74.63, 75% of the initial price of $99.51, during the life of the notes and finish below the initial price in which case the payout will be Kansas City Southern shares equal to $1,000 principal amount divided by the initial price.
RBC Capital Markets Corp. is the agent.
Issuer: | Royal Bank of Canada
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Issue: | Reverse convertible notes
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Underlying stock: | Kansas City Southern (Symbol: KSU)
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Amount: | $726,000
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Maturity: | June 25, 2014
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Coupon: | 8%, payable monthly
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Price: | Par
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Payout at maturity: | Par in cash unless Kansas City Southern shares fall below the protection price of $74.63, 75% of the initial price, and finish below the initial price, in which case Kansas City Southern shares equal to $1,000 principal amount divided by the initial price
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Initial price: | $99.51
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Protection price: | $74.63, 75% of $99.51
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Pricing date: | March 20
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Settlement date: | March 25
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Agent: | RBC Capital Markets Corp.
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Fees: | 0%
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Cusip: | 78010UTE7
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