By Laura Lutz
Des Moines, Nov. 7 - Royal Bank of Canada priced a $3.07 million issue of 18.6% reverse convertible notes due Nov. 10, 2008 linked to Suntech Power Holdings Co., 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 Suntech stock stays at or above the protection price, 60% of the initial price of $56.80, during the life of the notes or finishes at or above the initial price.
Otherwise, the payout will be in Suntech 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: | Suntech Power Holdings Co., Ltd. (Symbol: STP)
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Amount: | $3,065,000
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Maturity: | Nov. 10, 2008
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Coupon: | 18.6%
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Price: | Par
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Payout at maturity: | Par in cash if Suntech stock stays at or above the protection price of $34.08 or finishes at or above the initial price; otherwise shares of Suntech stock equal to $1,000 divided by the initial price
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Initial price: | $56.80
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Protection price: | $34.08, 60% of $56.80
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Pricing date: | Nov. 5
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Settlement date: | Nov. 8
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Agent: | RBC Capital Markets Corp.
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Fees: | 2.5%
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