Published on 3/17/2011 in the Prospect News Structured Products Daily.
New Issue: RBC prices $402,000 27.95% reverse convertibles linked to Patriot Coal
New York, March 17 - Royal Bank of Canada priced $402,000 of 27.95% reverse convertible notes due June 20, 2011 linked to Patriot Coal Corp. shares, according to a 424B2 filing with the Securities and Exchange Commission.
The payout at maturity will be par in cash unless Patriot Coal shares fall below the protection price of $18.34, 80% of the initial price of $22.93, during the life of the notes and finish below the initial price in which case the payout will be Patriot Coal shares equal to $1,000 principal amount divided by the initial 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: | Patriot Coal Corp. (Symbol: PCX)
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Amount: | $402,000
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Maturity: | June 20, 2011
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Coupon: | 27.95%, payable monthly
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Price: | Par
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Payout at maturity: | Par in cash unless Patriot Coal shares fall below the protection price of $18.34, 80% of the initial price, and finish below the initial price, in which case Patriot Coal shares equal to $1,000 principal amount divided by the initial price
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Initial price: | $22.93
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Protection price: | $18.34, 80% of $22.93
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Pricing date: | March 15
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Settlement date: | March 18
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Agent: | RBC Capital Markets Corp.
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Fees: | 1.5%
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Cusip: | 78008KU84
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