Published on 3/30/2010 in the Prospect News Structured Products Daily.
New Issue: RBC prices $1.66 million 17% reverse convertibles linked to McMoRan Exploration
By E. Janene Geiss
Philadelphia, March 30 - Royal Bank of Canada priced $1.66 million of 17% reverse convertible notes due June 30, 2010 linked to McMoRan Exploration Co. shares, according to a 424B2 filing with the Securities and Exchange Commission.
The payout at maturity will be par in cash unless McMoRan shares fall below the protection price, 65% of the initial price, during the life of the notes and finish below the initial price in which case the payout will be McMoRan shares equal to $1,000 principal amount divided by the initial 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: | McMoRan Exploration Co. (Symbol: MMR)
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Amount: | $1,659,000
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Maturity: | June 30, 2010
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Coupon: | 17%, payable monthly
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Price: | Par
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Payout at maturity: | Par in cash unless McMoRan shares fall below the protection price of $9.44, 65% of the initial price, and finish below the initial price, in which case McMoRan shares equal to $1,000 principal amount divided by the initial price
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Initial price: | $14.52
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Protection price: | $9.44, 65% of $14.52
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Pricing date: | March 26
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Settlement date: | March 31
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Agent: | RBC Capital Markets Corp.
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Fees: | 1.5%
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Cusip: | 78008HF88
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