By Susanna Moon
Chicago, March 4 - Royal Bank of Canada priced $1 million of 26.75% reverse convertible notes due May 5, 2008 linked to Lehman Brothers Holdings Inc. stock, according to a 424B2 filing with the Securities and Exchange Commission.
Interest is payable monthly.
Payout at maturity will be par in cash unless the stock falls below its protection price - 75% of the initial share price - during the life of the notes and finishes below the initial share price, in which case investors will receive a number of Lehman Brothers 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: | Lehman Brothers Holdings Inc. (NYSE: LEH)
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Amount: | $1 million
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Maturity: | May 5, 2008
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Coupon: | 26.75%, 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 during the life of the notes or finishes at or above the initial price; otherwise shares of Lehman Brothers stock equal to $1,000 divided by the initial share price
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Initial share price: | $50.99
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Protection price: | $38.24, or 75% of initial share price
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Pricing date: | Feb. 29
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Settlement date: | March 5
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Agent: | RBC Capital Markets Corp.
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Fees: | 1%
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