By Jennifer Chiou
New York, June 10 - Royal Bank of Canada priced $4 million of 0% autocallable optimization securities with contingent protection due June 14, 2011 linked to the common stock of Microsoft Corp., according to a 424B2 filing with the Securities and Exchange Commission.
If Microsoft stock closes at or above the initial share price on any of 12 monthly observation dates, the notes will be called automatically and investors will receive par of $10 plus an annualized call premium of 22.92%.
If the notes are not called, the payout at maturity will be par if the final share price is greater than or equal to 80% of the initial share price. Otherwise, investors will be exposed to the share price decline.
UBS Financial Services Inc. and RBC Capital Markets Corp. are the agents.
| Issuer: | Royal Bank of Canada
|
| Issue: | Autocallable optimization securities with contingent protection
|
| Underlying stock: | Microsoft Corp. (NYSE: MSFT)
|
| Amount: | $4 million
|
| Maturity: | June 14, 2011
|
| Coupon: | 0%
|
| Price: | Par of 10
|
| Payout at maturity: | If final share price is greater than or equal to trigger price, par; otherwise, par plus stock return
|
| Call: | Automatically at par plus annualized call premium of 22.92% if Microsoft stock closes at or above initial share price on any of 12 monthly observation dates
|
| Initial share price: | $25.11
|
| Trigger price: | $20.09, 80% of initial share price
|
| Pricing date: | June 8
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| Settlement date: | June 11
|
| Agents: | UBS Financial Services Inc. and RBC Capital Markets Corp.
|
| Fees: | 1.25%
|
| Cusip: | 78009C829
|
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