Published on 3/30/2007 in the Prospect News Structured Products Daily.
New Issue: RBC sells $285,000 19.15% reverse convertibles linked to Overstock.com
By Jennifer Chiou
New York, March 30 - Royal Bank of Canada priced $285,000 of 19.15% reverse convertible notes due March 31, 2008 linked to Overstock.com, Inc. stock, according to a 424B2 filing with the Securities and Exchange Commission.
The payout at maturity will be par in cash if Overstock.com stock stays at or above the protection price - 50% of the initial share price of $17.29 - during the life of the notes and finishes at or above the initial share price.
Otherwise, the payout will be in Overstock.com stock, with the number of shares equal to $1,000 divided by the initial share price.
Issuer: | Royal Bank of Canada
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Issue: | Reverse convertible notes
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Underlying stock: | Overstock.com, Inc.
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Amount: | $285,000
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Maturity: | March 31, 2008
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Coupon: | 19.15%, payable quarterly
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Price: | Par
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Payout at maturity: | Par in cash if Overstock.com stock stays at or above the protection price and finishes at or above the initial share price; otherwise, a number of Overstock.com shares equal to $1,000 principal amount divided by the initial price
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Initial share price: | $17.29
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Protection price: | $8.65, 50% of $17.29
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Pricing date: | March 27
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Settlement date: | March 30
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Agent: | RBC Capital Markets Corp.
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Fees: | 2%
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