Published on 2/27/2007 in the Prospect News Structured Products Daily.
New Issue: RBC sells $225,000 15.5% reverse convertibles linked to Advanced Micro Devices
By E. Janene Geiss
Philadelphia, Feb. 27 - Royal Bank of Canada priced $225,000 of 15.5% reverse convertible notes due Feb. 28, 2008 linked to Advanced Micro Devices, Inc. stock, according to a 424B2 filing with the Securities and Exchange Commission.
The payout at maturity will be par in cash if Advanced Micro Devices stock stays at or above the protection price - 80% of the initial share price of $14.69 - during the life of the notes and finishes at or above the initial share price.
Otherwise, the payout will be in Advanced Micro Devices stock, with the number of shares equal to $1,000 divided by the initial share price.
Issuer: | Royal Bank of Canada
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Issue: | Reverse convertible notes
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Underlying stock: | Advanced Micro Devices, Inc.
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Amount: | $225,000
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Maturity: | Feb. 28, 2008
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Coupon: | 15.5%, payable quarterly
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Price: | Par
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Payout at maturity: | Par in cash if Advanced Micro Devices stock stays at or above the protection price of $11.75 and finishes at or above the initial share price; otherwise, 68.073 shares of Advanced Micro Devices stock
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Initial share price: | $14.69
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Protection price: | $11.75, 80% of $14.69
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Pricing date: | Feb. 23
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Settlement date: | Feb. 28
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Agent: | RBC Capital Markets Corp.
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Agent fees: | 2%
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