By Angela McDaniels
Tacoma, Wash., May 10 - Royal Bank of Canada priced $2.32 million of trigger phoenix autocallable optimization securities due May 10, 2012 linked to the common stock of Southwestern Energy Co., according to a 424B2 filing with the Securities and Exchange Commission.
If Southwestern Energy stock closes at or above the trigger price - 80% of the initial share price - on a quarterly observation date, the issuer will pay a contingent coupon that quarter at the rate of 12.91% per year. Otherwise, no coupon will be paid for that quarter.
If Southwestern Energy 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 80% 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: | Southwestern Energy Co. (Symbol: SWN)
|
| Amount: | $2,316,800
|
| Maturity: | May 10, 2012
|
| Coupon: | 12.91% if Southwestern Energy stock closes at or above the trigger price on an observation date, otherwise none; payable quarterly
|
| Price: | Par of $10.00
|
| 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 Southwestern Energy's shares close at or above the initial price on any quarterly observation date
|
| Initial share price: | $41.91
|
| Trigger price: | $33.53, 80% of initial share price
|
| Pricing date: | May 6
|
| Settlement date: | May 11
|
| Underwriters: | UBS Financial Services Inc. and RBC Capital Markets, LLC
|
| Fees: | 1.5%
|
| Cusip: | 78009C365
|
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