Published on 8/30/2007 in the Prospect News Structured Products Daily.
New Issue: RBC prices $842,000 18.15% reverse convertibles linked to KBR
By E. Janene Geiss
Philadelphia, Aug. 30 - Royal Bank of Canada priced an $842,000 issue of reverse convertible notes due Nov. 30, 2007 linked to the common stock of KBR, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
The three-month notes will pay 4.53% for an annualized rate of 18.15%. Interest is payable monthly.
The payout at maturity will be par unless KBR stock falls by more than 20% during the life of the notes and finishes below the initial share price, in which case the payout will be a number of KBR shares equal to $1,000 divided by the initial share price.
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: | KBR, Inc. (NYSE: KBR)
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Amount: | $842,000
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Maturity: | Nov. 30, 2007
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Coupon: | 18.15%, payable monthly
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Price: | Par
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Payout at maturity: | If KBR shares close below the barrier price during the life of the notes and the final share price is less than the initial share price, 31.017 KBR shares; otherwise, par
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Initial share price: | $32.24
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Barrier price: | $25.79, 80% of initial share price
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Pricing date: | Aug. 28
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Settlement date: | Aug. 31
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Agent: | RBC Capital Markets Corp.
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Fees: | 1. 5%
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