Published on 5/15/2013 in the Prospect News Structured Products Daily.
New Issue: RBC prices $3 million 8.7% autocallable reverse convertibles linked to Boeing, Occidental
By Toni Weeks
San Luis Obispo, Calif., May 15 - Royal Bank of Canada priced $3 million of 8.7% autocallable reverse convertible notes due Nov. 18, 2014 linked to the common stocks of Boeing Co. and Occidental Petroleum Corp., according to a 424B2 filing with the Securities and Exchange Commission.
Interest is payable monthly.
The notes will be automatically called at par if each of the underlying stocks closes at or above its initial price on a monthly call date.
If the notes are not automatically called, the payout at maturity will be par unless the final share price of either stock is less than 65% of its initial price, in which case the payout will be a number of shares equal to the $1,000 divided by the initial price of the worst-performing stock or, at the issuer's option, the cash value of those shares.
RBC Capital Markets, LLC is the agent.
| Issuer: | Royal Bank of Canada
|
| Issue: | Autocallable reverse convertible notes
|
| Underlying stocks: | Boeing Co. (Symbol: BA), Occidental Petroleum Corp. (Symbol: OXY)
|
| Amount: | $3 million
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| Maturity: | Nov. 18, 2014
|
| Coupon: | 8.7%, payable monthly
|
| Price: | Par
|
| Payout at maturity: | If final price of either underlying stock has declined to below its barrier price, a number of shares equal to $1,000 divided by initial price of worst-performing stock or, at issuer's option, cash value of those shares; otherwise, par
|
| Call: | Automatically called at par if both stocks close at or above their initial prices on a monthly call date
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| Initial prices: | $94.76 for Boeing, $90.53 for Occidental
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| Barrier prices: | $61.59 for Boeing, $58.84 for Occidental; 65% of initial prices
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| Pricing date: | May 13
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| Settlement date: | May 16
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| Agent: | RBC Capital Markets, LLC
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| Fees: | 0.5%
|
| Cusip: | 78008SX43
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