Published on 3/30/2007 in the Prospect News Convertibles Daily and Prospect News Structured Products Daily.
New Issue: RBC sells $10.778 million 12.75% reverse convertibles linked to General Motors
By Jennifer Chiou
New York, March 30 - Royal Bank of Canada priced $10.778 million of 12.75% reverse convertible notes due Sept. 28, 2007 linked to General Motors Corp. stock, according to a 424B2 filing with the Securities and Exchange Commission.
The payout at maturity will be par in cash if General Motors stock stays at or above the protection price - 65% of the initial share price of $32.18 - during the life of the notes and finishes at or above the initial share price.
Otherwise, the payout will be in General Motors stock, with the number of shares equal to $1,000 divided by the initial share price.
Issuer: | Royal Bank of Canada
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Issue: | Reverse convertible notes
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Underlying stock: | General Motors Corp.
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Amount: | $10.778 million
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Maturity: | Sept. 28, 2007
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Coupon: | 12.75%, payable quarterly
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Price: | Par
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Payout at maturity: | Par in cash if General Motors stock stays at or above the protection price and finishes at or above the initial share price; otherwise, a number of General Motors shares equal to $1,000 principal amount divided by the initial price
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Initial share price: | $32.18
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Protection price: | $20.92, 65% of $32.18
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Pricing date: | March 27
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Settlement date: | March 30
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Agent: | RBC Capital Markets Corp.
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Fees: | 1.75%
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