By E. Janene Geiss
Philadelphia, April 27 - Royal Bank of Canada priced $589,000 of reverse convertible notes due Oct. 30, 2007 linked to SanDisk Corp. stock, according to a 424B2 filing with the Securities and Exchange Commission.
The six-month notes will pay 8.5% for an annualized coupon of 17%.
Payout at maturity will be par in cash if SanDisk stock stays at or above the protection price, 80% of the initial share price of $43.93, during the life of the notes and finishes at or above the initial share price.
Otherwise, the payout will be in SanDisk stock, with the number of shares equal to $1,000 divided by the initial share price.
RBC Capital Markets Corp. is the agent.
| Issuer: | Royal Bank of Canada
|
| Issue: | Reverse convertible notes
|
| Underlying stock: | SanDisk Corp.
|
| Amount: | $589,000
|
| Maturity: | Oct. 30, 2007
|
| Coupon: | 17%
|
| Price: | Par
|
| Payout at maturity: | Par in cash if SanDisk stock stays at or above the protection price of $35.14 during the life of the notes and finishes at or above the initial share price; otherwise, 22.765 SanDisk shares
|
| Initial share price: | $43.93
|
| Protection price: | $35.14, 80% of $43.93
|
| Pricing date: | April 25
|
| Settlement date: | April 30
|
| Agent: | RBC Capital Markets Corp.
|
| Agent's fee: | 2%
|
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