By E. Janene Geiss
Philadelphia, April 27 - Royal Bank of Canada priced $6.853 million of reverse convertible notes due Oct. 30, 2007 linked to General Motors Corp. stock, according to a 424B2 filing with the Securities and Exchange Commission.
The six-month notes will pay 8.375% for an annualized coupon of 16.75%.
Payout at maturity will be par in cash if General Motors stock stays at or above the protection price, 70% of the initial share price of $31.07, 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.
RBC Capital Markets Corp. is the agent.
| Issuer: | Royal Bank of Canada
|
| Issue: | Reverse convertible notes
|
| Underlying stock: | General Motors Corp.
|
| Amount: | $6.853 million
|
| Maturity: | Oct. 30, 2007
|
| Coupon: | 16.75%
|
| Price: | Par
|
| Payout at maturity: | Par in cash if General Motors stock stays at or above the protection price of $21.75 during the life of the notes and finishes at or above the initial share price; otherwise, 32.185 General Motors shares
|
| Initial share price: | $31.07
|
| Protection price: | $21.75, 70% of $31.07
|
| Pricing date: | April 25
|
| Settlement date: | April 30
|
| Agent: | RBC Capital Markets Corp.
|
| Agent fee: | 2%
|
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