Published on 4/30/2014 in the Prospect News Structured Products Daily.
New Issue: RBC prices $2.86 million 7.6% reverse convertibles linked to Gilead, eBay
By Angela McDaniels
Tacoma, Wash., April 30 - Royal Bank of Canada priced $2.86 million of 7.6% callable reverse convertible notes due Nov. 12, 2015 linked to the worst performing of the common stocks of Gilead Sciences, Inc. and eBay Inc., according to a 424B2 filing with the Securities and Exchange Commission.
Interest is payable quarterly.
The notes are callable at par on July 28, 2014, Oct. 28, 2014, Jan. 28, 2015, April 28, 2015, and July 28, 2015.
The payout at maturity will be par unless either stock finishes below its barrier price, 65% of 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, an amount in cash equal to the value of those shares.
RBC Capital Markets, LLC is the agent.
| Issuer: | Royal Bank of Canada
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| Issue: | Callable reverse convertible notes
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| Underlying stocks: | Gilead Sciences, Inc. (Symbol: GILD) and eBay Inc. (Symbol: EBAY)
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| Amount: | $2.86 million
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| Maturity: | Nov. 12, 2015
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| Coupon: | 7.6%, payable quarterly
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| Price: | Par
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| Payout at maturity: | Par unless either stock finishes below barrier price, in which case number of shares of worst-performing stock equal to $1,000 divided by that stock's initial share price or, at RBC's option, amount in cash equal to value of those shares
|
| Call option: | At par on July 28, 2014, Oct. 28, 2014, Jan. 28, 2015, April 28, 2015, and July 28, 2015
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| Initial share prices: | $74.08 for Gilead Sciences and $53.64 for eBay
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| Barrier prices: | $48.15 for Gilead Sciences and $34.87 for eBay; 65% of initial share prices
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| Pricing date: | April 28
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| Settlement date: | May 12
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| Underwriter: | RBC Capital Markets LLC
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| Fees: | None
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| Cusip: | 78010UXQ5
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