By Jennifer Chiou
New York, Sept. 26 - Royal Bank of Canada priced $1.11 million of reverse convertible notes due Jan. 2, 2008 linked to CSX Corp. stock, according to a 424B2 filing with the Securities and Exchange Commission.
The three-month notes will pay 4.375% for an annualized rate of 17.5%. Interest is payable upon maturity.
Payout at maturity will be par in cash if CSX stock stays at or above the protection price, 80% of the initial price of $40.68, during the life of the notes or finishes at or above the initial price.
Otherwise, the payout will be in CSX 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: | CSX Corp. (Symbol: CSX)
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Amount: | $1.11 million
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Maturity: | Jan. 2, 2008
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Coupon: | 17.5%, payable on maturity
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Price: | Par
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Payout at maturity: | Par in cash if CSX stock stays at or above the protection price of $32.54 or finishes at or above the initial price; otherwise shares of CSX stock equal to $1,000 divided by the initial price
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Initial price: | $40.68
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Protection price: | $32.54, 80% of $40.68
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Pricing date: | Sept. 25
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Settlement date: | Oct. 2
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Agent: | RBC Capital Markets Corp.
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Fees: | 1.25%
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