By Jennifer Chiou
New York, May 21 - Royal Bank of Canada priced $1 million of 23% annualized reverse convertible notes (RevCons) due Aug. 25, 2008 linked to the common stock of LDK Solar Co. Ltd., according to a 424B2 filing with the Securities and Exchange Commission.
Interest is payable monthly.
The payout at maturity will be par unless LDK Solar stock falls by more than 32.5% during the life of the notes and finishes below the initial share price, in which case the payout will be a number of LDK Solar 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 underwriter.
Issuer: | Royal Bank of Canada
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Issue: | Reverse convertible notes (RevCons)
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Underlying stock: | LDK Solar Co. Ltd. (Symbol: LDK)
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Amount: | $1 million
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Maturity: | Aug. 25, 2008
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Coupon: | 23%, payable monthly
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Price: | Par
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Payout at maturity: | Par in cash if the stock stays at or above the protection price of $27.76 during the life of the notes or finishes at or above the initial price; otherwise shares of LDK Solar stock equal to $1,000 divided by the initial price
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Initial share price: | $41.08
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Barrier price: | $27.76, 67.5% of initial share price
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Pricing date: | May 20
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Settlement date: | May 23
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Underwriter: | RBC Capital Markets Corp.
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Fees: | 1%
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