By E. Janene Geiss
Philadelphia, Sept. 27 - Royal Bank of Canada priced $1,184,000 of 21.3% annualized reverse convertible notes due Dec. 28, 2007 linked to Elan Corp. stock, according to a 424B2 filing with the Securities and Exchange Commission.
Interest is payable monthly.
Payout at maturity will be par in cash if Elan stock stays at or above the protection price, 70% of the initial price of $20.65, during the life of the notes or finishes at or above the initial price.
Otherwise, the payout will be in Elan stock, with the number of shares equal to $1,000 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: | Elan Corp. (Symbol: ELN)
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Amount: | $1,184,000
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Maturity: | Dec. 28, 2007
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Coupon: | 21.3% annualized, payable monthly
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Price: | Par
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Payout at maturity: | Par in cash if Elan stock stays at or above the protection price of $14.46 or finishes at or above the initial price; otherwise shares of Elan stock equal to $1,000 divided by the initial price
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Initial price: | $20.65
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Protection price: | $14.46, 70% of $20.65
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Pricing date: | Sept. 25
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Settlement date: | Sept. 28
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Agent: | RBC Capital Markets Corp.
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Fees: | 1.75%
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