By E. Janene Geiss
New York, May 30 - Royal Bank of Canada priced $359,000 of 10.85% reverse convertible notes due May 30, 2008 linked to Terex Corp. stock, according to a 424B2 filing with the Securities and Exchange Commission.
Interest will be paid quarterly.
Payout at maturity will be par in cash if Terex stock stays at or above the protection price, 70% of the initial share price of $81.00, during the life of the notes or finishes at or above the initial share price.
Otherwise, the payout will be in Terex stock, with the number of shares equal to $1,000 divided by the initial share price.
RBC Capital Markets Corp. is the agent.
| Issuer: | Royal Bank of Canada
|
| Issue: | Reverse convertible notes
|
| Underlying stock: | Terex Corp.
|
| Amount: | $359,000
|
| Maturity: | May 30, 2008
|
| Coupon: | 10.85%, payable quarterly
|
| Price: | Par
|
| Payout at maturity: | Par in cash if Terex stock stays at or above the protection price of $56.70 during the life of the notes or finishes at or above the initial share price; otherwise, 12.346 Terex shares
|
| Initial share price: | $81.00
|
| Protection price: | $56.70, 70% of $81.00
|
| Pricing date: | May 25
|
| Settlement date: | May 31
|
| Agent: | RBC Capital Markets Corp.
|
| Fees: | 2.75%
|
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