By Jennifer Chiou
New York, May 9 - Royal Bank of Canada priced $2.3 million of 10.25% annualized reverse convertible notes due Nov. 13, 2007 linked to Walter Industries, Inc. stock, according to a 424B2 filing with the Securities and Exchange Commission.
Payout at maturity will be par in cash if Walter Industries stock stays at or above the protection price, 80% of the initial share price of $28.44, during the life of the notes and finishes at or above the initial share price.
Otherwise, the payout will be in Walter Industries 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: | Walter Industries, Inc.
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Amount: | $2.3 million
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Maturity: | Nov. 13, 2007
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Coupon: | 10.25% annualized
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Price: | Par
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Payout at maturity: | Par in cash if Walter Industries stock stays at or above the protection price of $22.75 during the life of the notes and finishes at or above the initial share price; otherwise, Walter Industries shares equal to $1,000 divided by the initial price
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Initial share price: | $28.44
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Protection price: | $22.75, 80% of $28.44
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Pricing date: | May 7
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Settlement date: | May 10
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Agent: | RBC Capital Markets Corp.
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Fees: | 1.25%
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