Published on 5/31/2012 in the Prospect News Structured Products Daily.
New Issue: RBC prices $25,000 8.25% reverse convertibles linked to Wells Fargo
New York, May 31 - Royal Bank of Canada priced $25,000 of 8.25% reverse convertible notes due May 31, 2013 linked to Wells Fargo & Co. shares, according to a 424B2 filing with the Securities and Exchange Commission.
The payout at maturity will be par in cash unless Wells Fargo shares fall below the protection price of $25.80, 80% of the initial price of $32.25, during the life of the notes and finish below the initial price in which case the payout will be Wells Fargo shares equal to $1,000 principal amount divided by the initial 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: | Wells Fargo & Co. (Symbol: WFC)
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Amount: | $25,000
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Maturity: | May 31, 2013
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Coupon: | 8.25%, payable monthly
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Price: | Par
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Payout at maturity: | Par in cash unless Wells Fargo shares fall below the protection price of $25.80, 80% of the initial price, and finish below the initial price, in which case Wells Fargo shares equal to $1,000 principal amount divided by the initial price
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Initial price: | $32.25
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Protection price: | $25.80, 80% of $32.25
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Pricing date: | May 29
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Settlement date: | May 31
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Agent: | RBC Capital Markets Corp.
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Fees: | 2.5%
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Cusip: | 78008SAN6
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