By Angela McDaniels
Seattle, Aug. 15 - Royal Bank of Canada priced a $1 million issue of reverse convertible notes due Nov. 15, 2007 linked to the common stock of Apple Inc., according to a 424B2 filing with the Securities and Exchange Commission.
The three-month notes will pay 6% for an annualized rate of 24%. Interest is payable monthly.
The payout at maturity will be par unless Apple stock falls by more than 20% during the life of the notes and finishes below the initial share price, in which case the payout will be a number of Apple shares equal to $1,000 divided by the initial share price.
RBC Capital Markets Corp. is the agent.
Issuer: | Royal Bank of Canada
|
Issue: | Reverse convertible notes
|
Underlying stock: | Apple Inc. (Nasdaq: AAPL)
|
Amount: | $1 million
|
Maturity: | Nov. 15, 2007
|
Coupon: | 24%, payable monthly
|
Price: | Par
|
Payout at maturity: | If Apple shares close below the barrier price during the life of the notes and the final share price is less than the initial share price, 7.96115 Apple shares; otherwise, par
|
Initial share price: | $125.61
|
Barrier price: | $100.49, 80% of initial share price
|
Pricing date: | Aug. 14
|
Settlement date: | Aug. 17
|
Agent: | RBC Capital Markets Corp.
|
Fees: | 1%
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.