By E. Janene Geiss
New York, May 30 - Royal Bank of Canada priced $941,000 of reverse convertible notes due Aug. 31, 2007 linked to Elan Corp. plc stock, according to a 424B2 filing with the Securities and Exchange Commission.
The three-month notes will pay 4.875% for an annualized rate of 19.5%. Interest is payable at maturity.
Payout at maturity will be par in cash if Elan stock stays at or above the protection price, 70% of the initial share price of $19.33, during the life of the notes or finishes at or above the initial share price.
Otherwise, the payout will be in Elan 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: | Elan Corp. plc
|
| Amount: | $941,000
|
| Maturity: | Aug. 31, 2007
|
| Coupon: | 19.5% annualized, payable at maturity
|
| Price: | Par
|
| Payout at maturity: | Par in cash if Elan stock stays at or above the protection price of $13.53 during the life of the notes or finishes at or above the initial share price; otherwise, 51.733 Elan shares
|
| Initial share price: | $19.33
|
| Protection price: | $13.53, 70% of $19.33
|
| Pricing date: | May 25
|
| Settlement date: | May 31
|
| Agent: | RBC Capital Markets Corp.
|
| Fees: | 1.75%
|
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