By Laura Lutz
Des Moines, Dec. 31 - Royal Bank of Canada priced a $55,000 issue of 15.5% reverse convertible notes due March 31, 2008 linked to Yahoo! Inc. stock, according to a 424B2 filing with the Securities and Exchange Commission.
Interest will be payable monthly.
If Yahoo! stock stays at or above the protection price, 80% of the initial price of $23.71, during the life of the notes and finishes at or above the initial price, the payout will be a number of Yahoo! shares equal to par divided by the initial price.
Otherwise, the payout will be par in cash.
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: | Yahoo! Inc. (Symbol: YHOO)
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Amount: | $55,000
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Maturity: | March 31, 2008
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Coupon: | 15.5%
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Price: | Par
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Payout at maturity: | Par in cash if Yahoo! stock stays at or above the protection price of $18.97 or finishes at or above the initial price; otherwise shares of Yahoo! stock equal to par divided by the initial price
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Initial price: | $23.71
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Protection price: | $18.97, 80% of $23.71
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Pricing date: | Dec. 27
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Settlement date: | Dec. 31
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Agent: | RBC Capital Markets Corp.
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Fees: | 1.25%
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