New Issue: RBC prices $1.87 million 8% reverse convertibles on iShares Russell

By Marisa Wong

Madison, Wis., July 25 - Royal Bank of Canada priced $1.87 million of 8% reverse convertible notes due Jan. 26, 2012 linked to the iShares Russell 2000 index fund, according to a 424B2 filing with the Securities and Exchange Commission.

The payout at maturity will be par in cash unless the fund share price falls below the barrier price of $62.78, 75% of the initial price of $83.70, on any day during the life of the notes and finishes below the initial price, in which case the payout will be a number of fund shares equal to $1,000 principal amount divided by the initial price.

RBC Capital Markets, LLC is the agent.

Issuer:	Royal Bank of Canada
Issue:	Reverse convertible notes
Underlying ETF:	iShares Russell 2000 index fund (NYSE Arca: IWM)
Amount:	$1,873,000
Maturity:	Jan. 26, 2012
Coupon:	8%, payable monthly
Price:	Par
Payout at maturity:	Par in cash unless fund falls below the barrier price during life of the notes and finishes below the initial price, in which case a number of fund shares equal to $1,000 principal amount divided by the initial price
Initial price:	$83.70
Barrier price:	$62.78, 75% of $83.70
Pricing date:	July 21
Settlement date:	July 26
Agent:	RBC Capital Markets, LLC
Fees:	0.25%
Cusip:	78008TLQ5

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.