By Toni Weeks
San Diego, Sept. 20 - Royal Bank of Canada priced $9.35 million of trigger phoenix autocallable optimization securities due Sept. 20, 2012 linked to the common stock of Exxon Mobil Corp., according to a 424B2 filing with the Securities and Exchange Commission.
If the price of Exxon Mobil stock closes at or above the trigger price - 75% of the initial share price - on any of four quarterly observation dates, the issuer will pay a contingent coupon of 11.13% per year. Otherwise, no coupon will be paid for that quarter.
If the closing share price is greater than or equal to the initial price on any of the observation dates, the notes will be called at par of $10 plus the contingent coupon.
If the notes are not called and the Exxon Mobil share price finishes at or above the trigger price, the payout at maturity will be par plus the contingent coupon. Otherwise, investors will be exposed to any share price decline.
UBS Financial Services Inc. and RBC Capital Markets, LLC are the underwriters.
| Issuer: | Royal Bank of Canada
|
| Issue: | Trigger phoenix autocallable optimization securities
|
| Underlying stock: | Exxon Mobil Corp. (NYSE: XOM)
|
| Amount: | $9,348,610
|
| Maturity: | Sept. 20, 2012
|
| Coupon: | 11.13% per year, payable quarterly only if Exxon Mobil stock closes at or above trigger price on observation date for that quarter
|
| Price: | Par of $10
|
| Payout at maturity: | If Exxon Mobil shares finish at or above the trigger price, par plus contingent coupon; otherwise, exposure to losses
|
| Call: | At par plus contingent coupon if share price at or above initial price on any quarterly observation date
|
| Initial share price: | $74.55
|
| Trigger price: | $55.91, 75% of initial share price
|
| Pricing date: | Sept. 16
|
| Settlement date: | Sept. 21
|
| Underwriters: | UBS Financial Services Inc. and RBC Capital Markets, LLC
|
| Fees: | 1.5%
|
| Cusip: | 78010W780
|
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