By Angela McDaniels
Tacoma, Wash., Jan. 24 - Royal Bank of Canada priced $5.05 million of 10.5% callable reverse convertible notes due Jan. 30, 2015 linked to the worst performing of four equity securities, according to a 424B2 filing with the Securities and Exchange Commission.
The four reference stocks are Baker Hughes Inc., Chevron Corp., Halliburton Co. and Exxon Mobil Corp.
Interest is payable at maturity or upon redemption.
The notes are callable daily at par beginning May 23.
The payout at maturity will be par unless any reference stock falls below its barrier price, 70% of its initial price, during the life of the notes and the final price of the worst-performing stock is less than its initial price, in which case the payout will be a number of shares of the worst-performing stock equal to $1,000 divided by that stock's initial share price or, at RBC's option, the cash value of those shares.
RBC Capital Markets, LLC is the agent.
| Issuer: | Royal Bank of Canada
|
| Issue: | Callable reverse convertible notes
|
| Underlying stocks: | Baker Hughes Inc. (Symbol: BHI), Chevron Corp. (Symbol: CVX), Halliburton Co. (Symbol: HAL) and Exxon Mobil Corp. (Symbol: XOM)
|
| Amount: | $5.05 million
|
| Maturity: | Jan. 30, 2015
|
| Coupon: | 10.5%, payable at maturity or upon redemption
|
| Price: | Par
|
| Payout at maturity: | Par unless any reference stock falls below barrier price during life of notes and final price of worst-performing stock is less than initial price, in which case number of shares of worst-performing stock equal to $1,000 divided by that stock's initial share price or equivalent amount in cash
|
| Call option: | At par beginning May 23
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| Initial share prices: | $56.94 for Baker Hughes, $118.39 for Chevron, $50.11 for Halliburton and $96.97 for Exxon Mobile
|
| Barrier prices: | $39.86 for Baker Hughes, $82.87 for Chevron, $35.08 for Halliburton and $67.88 for Exxon Mobile, 70% of initial prices
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| Pricing date: | Jan. 23
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| Settlement date: | Jan. 30
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| Underwriter: | RBC Capital Markets LLC
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| Fees: | 1.25%
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| Cusip: | 78010UNS2
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