By E. Janene Geiss
Philadelphia, June 27 - Royal Bank of Canada priced $2 million of reverse convertible notes due Dec. 31, 2007 linked to SanDisk Corp. stock, according to a 424B2 filing with the Securities and Exchange Commission.
The six-month notes will pay 6.1% for an annualized rate of 12.2%. Interest is payable monthly.
The payout at maturity will be par in cash if SanDisk stock stays at or above the protection price of $35.48 - 75% of the initial price - 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
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Issue: | Reverse convertible notes
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Underlying stock: | SanDisk Corp.
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Amount: | $2 million
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Maturity: | Dec. 31, 2007
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Coupon: | 12.2%, payable monthly
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Price: | Par
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Payout at maturity: | Par in cash if SanDisk stock stays at or above the protection price of $35.48 during the life of the notes and finishes at or above the initial share price; otherwise, the number of SanDisk shares equal to $1,000 divided by the initial share price
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Initial share price: | $47.31
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Protection price: | $35.48, 75% of $47.31
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Pricing date: | June 26
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Settlement date: | June 29
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Agent: | RBC Capital Markets Corp.
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Fees: | 1.5%
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