Published on 4/27/2007 in the Prospect News Structured Products Daily.
New Issue: RBC sells $175,000 9.25% reverse convertibles linked to Conseco
By E. Janene Geiss
Philadelphia, April 27 - Royal Bank of Canada priced $175,000 of 9.25% reverse convertible notes due April 30, 2008 linked to Conseco, Inc. stock, according to a 424B2 filing with the Securities and Exchange Commission.
Payout at maturity will be par in cash if Conseco stock stays at or above the protection price, 80% of the initial share price of $17.79, during the life of the notes and finishes at or above the initial share price.
Otherwise, the payout will be in Conseco stock, with the number of shares equal to $1,000 divided by the initial share price.
RBC Capital Markets Corp. is the agent.
Issuer: | Royal Bank of Canada
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Issue: | Reverse convertible notes
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Underlying stock: | Conseco, Inc.
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Amount: | $175,000
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Maturity: | April 30, 2008
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Coupon: | 9.25%
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Price: | Par
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Payout at maturity: | Par in cash if Conseco stock stays at or above the protection price of $14.23 during the life of the notes and finishes at or above the initial share price; otherwise, 56.211 Conseco shares
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Initial share price: | $17.79
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Protection price: | $14.23, 80% of $17.79
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Pricing date: | April 25
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Settlement date: | April 30
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Agent: | RBC Capital Markets Corp.
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Agent's fee: | 2%
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