By E. Janene Geiss
Philadelphia, April 27 - Royal Bank of Canada priced $45,000 of reverse convertible notes due Oct. 30, 2007 linked to The Mosaic Co. stock, according to a 424B2 filing with the Securities and Exchange Commission.
The six-month notes will pay 7.375% for an annualized coupon of 14.75%.
Payout at maturity will be par in cash if Mosaic stock stays at or above the protection price, 80% of the initial share price of $30.56, during the life of the notes and finishes at or above the initial share price.
Otherwise, the payout will be in Mosaic 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
|
| Issue: | Reverse convertible notes
|
| Underlying stock: | The Mosaic Co.
|
| Amount: | $45,000
|
| Maturity: | Oct. 30, 2007
|
| Coupon: | 14.75%
|
| Price: | Par
|
| Payout at maturity: | Par in cash if Mosaic stock stays at or above the protection price of $24.45 during the life of the notes and finishes at or above the initial share price; otherwise, 32.723 Mosaic shares
|
| Initial share price: | $30.56
|
| Protection price: | $24.45, 80% of $30.56
|
| Pricing date: | April 25
|
| Settlement date: | April 30
|
| Agent: | RBC Capital Markets Corp.
|
| Agent's fee: | 1.5%
|
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