By Laura Lutz
Des Moines, March 17 - Royal Bank of Canada priced $2.1 million of 23.8% reverse convertible notes due June 24, 2008 linked to the common stock of Valero Energy Corp., according to a 424B2 filing with the Securities and Exchange Commission.
Interest is payable monthly.
If Valero stock falls below the protection price - 80% of the initial share price - during the life of the notes and finishes below the initial share price, the payout at maturity will be a number of Valero shares equal to par divided by the initial price.
Otherwise, the payout will be par.
RBC Capital Markets Corp. is the agent.
| Issuer: | Royal Bank of Canada
|
| Issue: | Reverse convertible notes
|
| Underlying stock: | Valero Energy Corp. (Symbol: VLO)
|
| Amount: | $2.1 million
|
| Maturity: | June 24, 2008
|
| Coupon: | 23.8%, paid monthly
|
| Price: | Par
|
| Payout at maturity: | If Valero stock falls below $39.29 during the life of the notes and finishes below its initial price, shares of Valero equal to par divided by the initial price; otherwise, par
|
| Initial price: | $49.11
|
| Protection price: | $39.29, 80% of $49.11
|
| Pricing date: | March 14
|
| Settlement date: | March 24
|
| Agent: | RBC Capital Markets Corp.
|
| Fees: | 1.25%
|
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