By Laura Lutz
Des Moines, Oct. 24 - Royal Bank of Canada priced a $1 million issue of 12.25% reverse convertible notes due April 25, 2008 linked to Schlumberger Ltd. stock, according to a 424B2 filing with the Securities and Exchange Commission.
Interest will be payable monthly.
Payout at maturity will be par in cash if Schlumberger stock stays at or above the protection price, 70% of the initial price of $95.34, during the life of the notes or finishes at or above the initial price.
Otherwise, the payout will be in Schlumberger 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: | Schlumberger Ltd. (Symbol: SLB)
|
| Amount: | $1 million
|
| Maturity: | April 25, 2008
|
| Coupon: | 12.25%
|
| Price: | Par
|
| Payout at maturity: | Par in cash if Schlumberger stock stays at or above the protection price of $66.74 or finishes at or above the initial price; otherwise shares of Schlumberger stock equal to $1,000 divided by the initial price
|
| Initial price: | $95.34
|
| Protection price: | $66.74, 70% of $95.34
|
| Pricing date: | Oct. 22
|
| Settlement date: | Oct. 25
|
| Agent: | RBC Capital Markets Corp.
|
| Fees: | 1%
|
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