Published on 9/25/2007 in the Prospect News Structured Products Daily.
New Issue: RBC prices $400,000 22% reverse convertibles linked to Lehman Brothers
By Susanna Moon
Chicago, Sept. 25 - Royal Bank of Canada priced a $400,000 issue of 22% reverse convertible notes due Dec. 28, 2007 linked to the common stock of Lehman Brothers Holding 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 20% during the life of the notes and finishes below the initial share price, in which case the payout will be a number of Lehman Brothers shares equal to $1,000 divided by the initial share price. Fractional shares will be paid in cash.
RBC Capital Markets Corp. is the agent.
Issuer: | Royal Bank of Canada
|
Issue: | Reverse convertible notes
|
Underlying stock: | Lehman Brothers Holding Inc. (NYSE: LEH)
|
Amount: | $400,000
|
Maturity: | Dec. 28, 2007
|
Coupon: | 22%, payable monthly
|
Price: | Par
|
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 Lehman Brothers shares equal to $1,000 divided by the initial price
|
Initial share price: | $62.70
|
Barrier price: | $50.16, or 80% of initial share price
|
Pricing date: | Sept. 21
|
Settlement date: | Sept. 28
|
Agent: | RBC Capital Markets Corp.
|
Fees: | 1.25%
|
© 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.