Published on 2/27/2007 in the Prospect News Structured Products Daily.
New Issue: RBC sells $7.601 million 8.75% reverse convertibles linked to Chevron
By E. Janene Geiss
Philadelphia, Feb. 27 - Royal Bank of Canada priced $7.601 million of 8.75% reverse convertible notes due Feb. 28, 2008 linked to Chevron Corp. stock, according to a 424B2 filing with the Securities and Exchange Commission.
The payout at maturity will be par in cash if Chevron stock stays at or above the protection price - 80% of the initial share price of $71.07 - during the life of the notes and finishes at or above the initial share price.
Otherwise, the payout will be in Chevron 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: | Chevron Corp.
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Amount: | $7.601 million
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Maturity: | Feb. 28, 2008
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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 Chevron stock stays at or above the protection price of $56.86 and finishes at or above the initial share price; otherwise, 14.07 shares of Chevron stock
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Initial share price: | $71.07
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Protection price: | $56.86, 80% of $71.07
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Pricing date: | Feb. 23
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Settlement date: | Feb. 28
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Agent: | RBC Capital Markets Corp.
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Agent fees: | 2.5%
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