Published on 1/25/2010 in the Prospect News Structured Products Daily.
New Issue: RBC sells $1 million 13% reverse convertibles tied to AK Steel stock
By Jennifer Chiou
New York, Jan. 25 - Royal Bank of Canada priced $1 million of 13% annualized reverse convertible notes due April 27, 2010 linked to AK Steel Holding Corp. stock, according to a 424B2 filing with the Securities and Exchange Commission.
The payout at maturity will be par in cash unless AK Steel shares fall below the protection price - 65% of the initial price - during the life of the notes and finish below the initial price, in which case the payout will be a number of AK Steel 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: | AK Steel Holding Corp. (NYSE: AKS)
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Amount: | $1 million
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Maturity: | April 27, 2010
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Coupon: | 13%, payable monthly
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Price: | Par
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Payout at maturity: | Par in cash unless AK Steel shares fall below the protection price during the life of the notes and finish below the initial price, in which case a number of AK Steel shares equal to $1,000 principal amount divided by the initial price
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Initial price: | $20.71
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Protection price: | $13.46, 65% of initial price
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Pricing date: | Jan. 22
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Settlement date: | Jan. 27
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Agent: | RBC Capital Markets Corp.
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Fees: | 1.25%
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Cusip: | 78008HWA4
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