By Jennifer Chiou
New York, April 12 - Royal Bank of Canada priced $5.17 million of trigger phoenix autocallable optimization securities due April 12, 2012 linked to Starbucks Corp. shares, according to a 424B2 filing with the Securities and Exchange Commission.
If Starbucks 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 of 13.32%. Otherwise, no coupon will be paid for the quarter.
If the stock closes at or above the initial price on any observation date, the notes will be called at par of $10 plus the contingent coupon.
If the notes are not called and Starbucks shares finish at or above the trigger price, the payout at maturity will be par.
Investors will be exposed to any losses.
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: | Starbucks Corp. (Symbol: SBUX)
|
| Amount: | $5,166,980
|
| Maturity: | April 12, 2012
|
| Coupon: | 13.32% if Starbucks stock closes at or above the trigger price on observation date; payable quarterly
|
| Price: | Par of $10
|
| Payout at maturity: | If Starbucks shares finish at or above the trigger price, par; otherwise, exposure to losses
|
| Call option: | At par plus contingent coupon if share price is at or above initial price on any quarterly observation date
|
| Initial share price: | $35.77
|
| Trigger price: | $28.62, 80% of initial share price
|
| Pricing date: | April 8
|
| Settlement date: | April 13
|
| Underwriters: | UBS Financial Services Inc. and RBC Capital Markets, LLC
|
| Fees: | 1.5%
|
| Cusip: | 78009C266
|
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