By Jennifer Chiou
New York, May 17 - Royal Bank of Canada priced $25.18 million of trigger phoenix autocallable optimization securities due May 17, 2012 linked to the common stock of Silver Wheaton Corp., according to a 424B2 filing with the Securities and Exchange Commission.
If Silver Wheaton stock closes at or above the trigger price - 55% of the initial share price - on a quarterly observation date, the issuer will pay a contingent coupon that quarter at the rate of 15.36% per year. Otherwise, no coupon will be paid for that quarter.
If Silver Wheaton stock closes at or above the initial share price on any quarterly observation date, the notes will be called at par of $10 plus the contingent coupon.
If the notes are not called and the stock finishes at or above 55% of the initial price, the payout at maturity will be par. Otherwise, the payout will be par plus the stock return.
UBS Financial Services Inc. and RBC Capital Markets, LLC are the underwriters.
| Issuer: | Royal Bank of Canada
|
| Issue: | Trigger phoenix autocallable optimization securities
|
| Underlying stock: | Silver Wheaton Corp. (Symbol: SLW)
|
| Amount: | $25,176,930
|
| Maturity: | May 17, 2012
|
| Coupon: | 15.36% if Silver Wheaton stock closes at or above the trigger price on an observation date, otherwise none; payable quarterly
|
| Price: | Par of $10
|
| Payout at maturity: | Par if final share price is greater than or equal to trigger price; otherwise, par plus stock return
|
| Call: | At par plus coupon payment if Silver Wheaton's shares close at or above the initial price on any quarterly observation date
|
| Initial share price: | $34.10
|
| Trigger price: | $18.76, 55% of initial share price
|
| Pricing date: | May 13
|
| Settlement date: | May 18
|
| Underwriters: | UBS Financial Services Inc. and RBC Capital Markets, LLC
|
| Fees: | 1.5%
|
| Cusip: | 78009C373
|
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