Published on 12/31/2008 in the Prospect News Structured Products Daily.
New Issue: RBC prices $157,000 20.5% reverse convertibles linked to Intuitive Surgical
By Jennifer Chiou
New York, Dec. 31 - Royal Bank of Canada priced a $157,000 issue of 20.5% reverse convertible notes due March 31, 2008 linked to the common stock of Intuitive Surgical, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
Interest is payable monthly.
The payout at maturity will be par unless the stock falls by more than 30% during the life of the notes and finishes below the initial share price, in which case the payout will be a number of Intuitive Surgical shares equal to $1,000 divided by the initial share price, or, at the bank's option, the equivalent cash value.
RBC Capital Markets Corp. is the agent.
Issuer: | Royal Bank of Canada
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Issue: | Reverse convertible notes
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Underlying stock: | Intuitive Surgical, Inc. (Symbol: ISRG)
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Amount: | $157,000
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Maturity: | March 31, 2008
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Coupon: | 20.5%, payable monthly
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Price: | Par
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Payout at maturity: | If the stock falls below the barrier price during the life of the notes and finishes below the initial share price, a number of Intuitive Surgical shares equal to $1,000 divided by the initial price; otherwise, par
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Initial share price: | $329.56
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Barrier price: | $230.69, 70% of initial share price
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Pricing date: | Dec. 27
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Settlement date: | Dec. 31
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Agent: | RBC Capital Markets Corp.
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Fees: | 1.5%
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