By Angela McDaniels
Tacoma, Wash., March 3 - Royal Bank of Canada priced $2 million of 11% annualized reverse convertible notes due Sept. 8, 2011 linked to the worst-performing of three stocks, according to a 424B2 filing with the Securities and Exchange Commission.
The stocks are American Express Co., Starwood Hotels & Resorts Worldwide Inc. and JPMorgan Chase & Co.
Interest is payable quarterly.
The payout at maturity will be par unless the final price of any of the three stocks is less than 65% of its initial share price, in which case the payout will be a number of shares of the worst-performing stock equal to $1,000 divided by that stock's initial share price.
The notes will be automatically called at par if all three stocks close at or above their initial share prices on June 1, 2011.
RBC Capital Markets, LLC is the agent.
| Issuer: | Royal Bank of Canada
|
| Issue: | Reverse convertible notes
|
| Underlying stocks: | American Express Co. (Symbol: AXP), Starwood Hotels & Resorts Worldwide Inc. (Symbol: HOT) and JPMorgan Chase & Co. (Symbol: JPM)
|
| Amount: | $2 million
|
| Maturity: | Sept. 8, 2011
|
| Coupon: | 11%, payable quarterly
|
| Price: | Par
|
| Payout at maturity: | If the final price of any stock is less than its trigger price, a number of shares of the worst-performing stock equal to $1,000 divided by that stock's initial share price; otherwise, par
|
| Call: | Automatically at par if each stock closes at or above its initial share price on June 1, 2011
|
| Initial share prices: | $43.23 for American Express, $58.5668 for Starwood and $45.68 for JPMorgan
|
| Barrier prices: | For each stock, 65% of its initial price
|
| Pricing date: | March 1
|
| Settlement date: | March 7
|
| Agent: | RBC Capital Markets, LLC
|
| Fees: | None
|
| Cusip: | 78008KS20
|
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