Published on 2/20/2007 in the Prospect News Structured Products Daily.
New Issue: RBC sells $1.53 million 8.75% reverse convertibles linked to UnitedHealth
By Jennifer Chiou
New York, Feb. 20 - Royal Bank of Canada priced $1.53 million of 8.75% reverse convertible notes due Aug. 21, 2007 linked to UnitedHealth Group Inc. stock, according to a 424B2 filing with the Securities and Exchange Commission.
The payout at maturity will be par in cash if UnitedHealth stock stays at or above the protection price - 80% of the initial share price of $53.95 - during the life of the notes and finishes at or above the initial share price.
Otherwise, the payout will be in UnitedHealth 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: | UnitedHealth Group Inc.
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Amount: | $1.53 million
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Maturity: | Aug. 21, 2007
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Coupon: | 8.75%, payable quarterly
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Price: | Par
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Payout at maturity: | Par in cash if UnitedHealth stock stays at or above the protection price of $43.16 and finishes at or above the initial share price; otherwise, 18.53568 shares of UnitedHealth stock
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Initial share price: | $53.95
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Protection price: | $43.16, 80% of $53.95
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Pricing date: | Feb. 16
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Settlement date: | Feb. 22
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Agent: | RBC Capital Markets Corp.
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Agent fees: | 1.25%
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