By E. Janene Geiss
Philadelphia, Oct. 30 - Royal Bank of Canada priced $166,000 of reverse convertible notes due April 30, 2008 linked to Bucyrus International, Inc. stock, according to a 424B2 filing with the Securities and Exchange Commission.
The six-month notes will pay 6.2% for an annualized rate of 12.4%. Interest is payable monthly.
Payout at maturity will be par in cash if the stock stays at or above the protection price, 70% of the initial price, during the life of the notes or finishes at or above the initial price.
Otherwise, the payout will be in Bucyrus stock, with the number of shares equal to $1,000 divided by the initial share 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: | Bucyrus International, Inc. (Symbol: BUCY)
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Amount: | $166,000
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Maturity: | April 30, 2008
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Coupon: | 12.4%, payable monthly
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Price: | Par
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Payout at maturity: | Par in cash if the stock stays at or above the protection price during the life of the notes or finishes at or above the initial price; otherwise shares of Bucyrus stock equal to $1,000 divided by the initial price
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Initial price: | $80.00
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Protection price: | $56.00, 70% of $80.00
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Pricing date: | Oct. 26
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Settlement date: | Oct. 31
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Agent: | RBC Capital Markets Corp.
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Fees: | 2%
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