Published on 1/6/2012 in the Prospect News Structured Products Daily.
New Issue: RBC prices $1.24 million 12.85% reverse convertibles linked to Baker Hughes
New York, Jan. 6 - Royal Bank of Canada priced $1.238 million of 12.85% reverse convertible notes due April 10, 2012 linked to Baker Hughes Inc. shares, according to a 424B2 filing with the Securities and Exchange Commission.
The payout at maturity will be par in cash unless Baker Hughes shares fall below the protection price of $38.65, 75% of the initial price of $51.53, during the life of the notes and finish below the initial price in which case the payout will be Baker Hughes shares equal to $1,000 principal amount divided by the initial price.
RBC Capital Markets Corp. is the agent.
Issuer: | Royal Bank of Canada
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Issue: | Reverse convertible notes
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Underlying stock: | Baker Hughes Inc. (Symbol: BHI)
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Amount: | $1.238 million
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Maturity: | April 10, 2012
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Coupon: | 12.85%, payable monthly
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Price: | Par
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Payout at maturity: | Par in cash unless Baker Hughes shares fall below the protection price of $38.65, 75% of the initial price, and finish below the initial price, in which case Baker Hughes shares equal to $1,000 principal amount divided by the initial price
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Initial price: | $51.53
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Protection price: | $38.65, 75% of $51.53
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Pricing date: | Jan. 4
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Settlement date: | Jan. 9
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Agent: | RBC Capital Markets Corp.
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Fees: | 1.25%
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Cusip: | 78008TH31
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