Published on 5/1/2013 in the Prospect News Structured Products Daily.
New Issue: RBC prices $3 million 9.6% autocallable reverse convertibles linked to Deere, Cummins
By Jennifer Chiou
New York, May 1 - Royal Bank of Canada priced $3 million of 9.6% autocallable reverse convertible notes due Nov. 6, 2014 linked to the common stocks of Deere & Co. and Cummins Inc., according to a 424B2 filing with the Securities and Exchange Commission.
Interest is payable quarterly.
The notes will be automatically called at par if each of the underlying stocks closes at or above its initial price on a quarterly call date.
If the notes are not automatically called, the payout at maturity will be par unless the final share price of either stock is less than 65% of its initial price, in which case the payout will be a cash amount equal to the product of (a) $1,000 divided by the initial price of the worst-performing stock and (b) the final share price of the worst-performing stock.
RBC Capital Markets, LLC is the agent.
| Issuer: | Royal Bank of Canada
|
| Issue: | Autocallable reverse convertible notes
|
| Underlying stocks: | Deere & Co. (NYSE: DE), Cummins Inc. (NYSE: CMI)
|
| Amount: | $3 million
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| Maturity: | Nov. 6, 2014
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| Coupon: | 9.6%, payable quarterly
|
| Price: | Par
|
| Payout at maturity: | If final price of either underlying stock has declined from initial price by more than buffer amount, cash amount equal to worst-performing stock's final share price multiplied by its delivery amount; otherwise, par
|
| Call: | Automatically called at par if all stocks close at or above their initial prices on a quarterly call date
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| Initial prices: | $86.03 for Deere, $112.16 for Cummins
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| Barrier prices: | $55.92 for Deere, $72.90 for Cummins; 65% of initial prices
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| Pricing date: | April 25
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| Settlement date: | May 7
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| Agent: | RBC Capital Markets, LLC
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| Fees: | 0.5%
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| Cusip: | 78008ST55
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