By Marisa Wong
Madison, Wis., Sept. 27 - Royal Bank of Canada priced $765,500 of trigger phoenix autocallable optimization securities due Sept. 28, 2012 linked to the common stock of Walgreen Co., according to a 424B2 filing with the Securities and Exchange Commission.
If the price of Walgreen stock closes at or above the trigger price - 75% of the initial share price - on any of four quarterly observation dates, the issuer will pay a contingent coupon of 14.94% per year. Otherwise, no coupon will be paid for that quarter.
If the closing share price is greater than or equal to the initial price on any of the observation dates, the notes will be called at par of $10 plus the contingent coupon.
If the notes are not called and the Walgreen share price finishes at or above the trigger price, the payout at maturity will be par plus the contingent coupon. Otherwise, investors will be exposed to any share price decline.
UBS Financial Services Inc. and RBC Capital Markets, LLC are the underwriters.
| Issuer: | Royal Bank of Canada
|
| Issue: | Trigger phoenix autocallable optimization securities
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| Underlying stock: | Walgreen Co. (NYSE: WAG)
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| Amount: | $765,500
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| Maturity: | Sept. 28, 2012
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| Coupon: | 14.94% per year, payable quarterly if stock closes at or above trigger price on observation date for that interest period
|
| Price: | Par of $10.00
|
| Payout at maturity: | Par plus contingent coupon if Walgreen shares finish at or above trigger price; otherwise, par plus stock return
|
| Call: | Automatically at par plus contingent coupon if Walgreen shares close at or above initial price on an observation date
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| Initial share price: | $34.89
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| Trigger price: | $26.17, 75% of initial share price
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| Pricing date: | Sept. 23
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| Settlement date: | Sept. 28
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| Underwriters: | UBS Financial Services Inc. and RBC Capital Markets, LLC
|
| Fees: | 1.5%
|
| Cusip: | 78010W822
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