By Jennifer Chiou
New York, Aug. 13 - Royal Bank of Canada priced $4 million of 0% autocallable optimization securities with contingent protection due Aug. 17, 2011 linked to the common stock of WMWare, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
UBS Financial Services Inc. and RBC Capital Markets Corp. are the underwriters.
If WMWare stock closes at or above the initial share price on any of 12 monthly observation dates, the notes will be called automatically and investors will receive par of $10 plus an annualized call premium of 23.4%.
If the notes are not called, the payout at maturity will be par if the final share price is greater than or equal to 70% of the initial share price. Otherwise, investors will be fully exposed to the share price decline.
| Issuer: | Royal Bank of Canada
|
| Issue: | Autocallable optimization securities with contingent protection
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| Underlying stock: | WMWare, Inc. (Symbol: VMW)
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| Amount: | $4 million
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| Maturity: | Aug. 17, 2011
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| Coupon: | 0%
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| Price: | Par of $10
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| Payout at maturity: | If final share price is greater than or equal to trigger price, par; otherwise, par plus stock return
|
| Call: | Automatically at par plus annualized call premium of 23.4% if WMWare stock closes at or above initial share price on any of 12 monthly observation dates
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| Initial share price: | $76.93
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| Trigger price: | $53.85, 70% of initial share price
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| Pricing date: | Aug. 11
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| Settlement date: | Aug. 16
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| Underwriters: | UBS Financial Services Inc. and RBC Capital Markets Corp.
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| Fees: | 1.25%
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| Cusip: | 78009C878
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