By Laura Lutz
Des Moines, Feb. 12 - Royal Bank of Canada corrected the initial share price in its $607,000 offering of 25.5% reverse convertible notes due May 13, 2008 linked to General Motors Corp. common stock in a 424B2 filed with the Securities and Exchange Commission on Tuesday.
The initial price of the stock is $25.80. When pricing was first announced in a 424B2 filed on Monday, the initial share price was given as $28.50.
If General Motors stock falls below the protection price -75% of the initial share price - during the life of the notes and finishes below the initial share price, the payout at maturity will be a number of General Motors shares equal to par divided by the initial share price.
Otherwise, the payout will be par in cash.
RBC Capital Markets Corp. is the agent.
| Issuer: | Royal Bank of Canada
|
| Issue: | Reverse convertible notes
|
| Underlying stock: | General Motors Corp. (Symbol: GM)
|
| Amount: | $607,000
|
| Maturity: | May 13, 2008
|
| Coupon: | 25.5%, payable monthly
|
| Price: | Par
|
| Payout at maturity: | If General Motors stock falls below the protection price during the life of the notes and finishes below the initial share price, General Motors shares equal to par divided by initial share price; otherwise, par in cash
|
| Initial share price: | $25.80
|
| Protection price: | $19.35, 75% of $25.80
|
| Pricing date: | Feb. 8
|
| Settlement date: | Feb. 13
|
| Agent: | RBC Capital Markets Corp.
|
| Fees: | 2%
|
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