Published on 4/29/2008 in the Prospect News Structured Products Daily.
New Issue: RBC prices $1.8 million 14% RevCons linked to Bank of America
By E. Janene Geiss
Philadelphia, April 29 - Royal Bank of Canada priced $1.8 million of 14% annualized reverse convertible notes (RevCons) due Oct. 31, 2008 linked to the common stock of the Bank of America Corp., according to a 424B2 filing with the Securities and Exchange Commission.
Interest is payable monthly.
The payout at maturity will be par unless Bank of America stock falls by more than 30% during the life of the notes and finishes below the initial share price, in which case the payout will be a number of Bank of America shares equal to $1,000 divided by the initial share price or, at the bank's option, the equivalent cash value.
RBC Capital Markets Corp. is the underwriter.
Issuer: | Royal Bank of Canada
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Issue: | Reverse convertible notes (RevCons)
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Underlying stock: | Bank of America Corp. (Symbol: BAC)
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Amount: | $1,797,000
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Maturity: | Oct. 31, 2008
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Coupon: | 14%, payable monthly
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Price: | Par
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Payout at maturity: | Par in cash if the stock stays at or above the protection price of $26.81 during the life of the notes or finishes at or above the initial price; otherwise shares of Bank of America stock equal to $1,000 divided by the initial price
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Initial share price: | $38.30
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Barrier price: | $26.81, 70% of initial share price
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Pricing date: | April 25
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Settlement date: | April 30
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Underwriter: | RBC Capital Markets Corp.
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Fees: | 1.875%
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