By Angela McDaniels
Tacoma, Wash., Sept. 9 - Royal Bank of Canada priced $5 million of 16% callable reverse convertible notes due Sept. 12, 2011 linked to the common stock of Zions Bancorp., according to a 424B2 filing with the Securities and Exchange Commission.
Interest is payable quarterly.
The notes will be called at par if Zions stock closes at or above the initial share price on Dec. 7, March 7, June 7, 2011 or Sept. 7, 2011.
The payout at maturity will be par unless the final price of Zions stock is less than 60% of the initial price, in which case the payout will be a number of Zions shares equal to $1,000 divided by the initial share price or, at the issuer's option, a cash amount equal to the value of those shares.
RBC Capital Markets Corp. is the agent.
| Issuer: | Royal Bank of Canada
|
| Issue: | Callable reverse convertible notes
|
| Underlying stock: | Zions Bancorp. (Nasdaq: ZION)
|
| Amount: | $5 million
|
| Maturity: | Sept. 12, 2011
|
| Coupon: | 16%, payable quarterly
|
| Price: | Par
|
| Payout at maturity: | Par in cash unless Zions shares finish below protection price, in which case 51.22951 Zions shares or equivalent in cash
|
| Call: | At par if Zions stock closes at or above initial share price on Dec. 7, March 7, June 7, 2011 or Sept. 7, 2011
|
| Initial price: | $19.52
|
| Protection price: | $11.71, or 60% of initial price
|
| Pricing date: | Sept. 7
|
| Settlement date: | Sept. 10
|
| Agent: | RBC Capital Markets Corp.
|
| Fees: | 1%
|
| Cusip: | 78008KKS1
|
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