By Angela McDaniels
Tacoma, Wash., Jan. 5 - Royal Bank of Canada changed some of the terms of its $1.4 million of reverse convertible notes due March 31, 2010 linked to the Market Vectors Gold Miners exchange-traded fund, according to an amended 424B2 filing with the Securities and Exchange Commission.
The coupon was increased to 13.25% from 12%, and the barrier price was lowered to $35.20, or 75% of the initial share price, from $37.54, or 80% of the initial price.
Interest is payable monthly.
The payout at maturity will be par unless shares of the ETF close below the barrier price during the life of the notes and the final share price is less than the initial share price, in which case the payout will be a number of shares of the ETF equal to $1,000 divided by the initial share price.
RBC Capital Markets Corp. is the underwriter.
| Issuer: | Royal Bank of Canada
|
| Issue: | Reverse convertible notes
|
| Underlying ETF: | Market Vectors Gold Miners (Symbol: GDX)
|
| Amount: | $1.4 million
|
| Maturity: | March 31, 2010
|
| Coupon: | 13.25%, payable monthly
|
| Price: | Par
|
| Payout at maturity: | If shares of the ETF close below the barrier price during the life of the notes and finish below the initial price, 21.30833 shares of the ETF; otherwise, par
|
| Initial share price: | $46.93
|
| Barrier price: | $35.20, 75% of initial price
|
| Pricing date: | Dec. 23
|
| Settlement date: | Dec. 31
|
| Underwriter: | RBC Capital Markets Corp.
|
| Fees: | 1.25%
|
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