Published on 3/5/2012 in the Prospect News Structured Products Daily.
New Issue: RBC prices $5 million 7.5% reverse convertibles linked to S&P 500, Russell
By Angela McDaniels
Tacoma, Wash., March 5 - Royal Bank of Canada priced $5 million of 7.5% cash-settled reverse convertible notes due March 6, 2013 linked to the worst performing of the S&P 500 index and the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
Interest is payable monthly.
The notes will be automatically called at par if both indexes close at or above their initial levels on any monthly call date.
If the notes are not called and both indexes finish at or above their barrier levels, 65% of the initial levels, the payout at maturity will be par. Otherwise, investors will be fully exposed to decline of the worst-performing index.
RBC Capital Markets, LLC is the underwriter.
| Issuer: | Royal Bank of Canada
|
| Issue: | Cash-settled reverse convertible notes
|
| Underlying indexes: | S&P 500 index and Russell 2000 index
|
| Amount: | $5 million
|
| Maturity: | March 6, 2013
|
| Coupon: | 7.5%, payable monthly
|
| Price: | Par
|
| Payout at maturity: | If either index finishes below barrier level, full exposure to decline of worst-performing index; otherwise, par
|
| Call: | Automatically at par if both indexes close at or above their initial index levels on April 2, 2012, May 1, 2012, June 1, 2012, July 2, 2012, Aug. 1, 2012, Sept. 4, 2012, Oct. 1, 2012, Nov. 1, 2012, Dec. 3, 2012, Jan. 2, 2013 or Feb. 1, 2013
|
| Initial index levels: | 1,374.09 for S&P 500 and 815.22 for Russell 2000
|
| Barrier levels: | 893.16 for S&P 500 and 529.89 for Russell 2000; 65% of initial levels
|
| Pricing date: | March 1
|
| Settlement date: | March 6
|
| Underwriter: | RBC Capital Markets, LLC
|
| Fees: | 0.5%
|
| Cusip: | 78008TX82
|
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