By Jennifer Chiou
New York, Aug. 23 - Royal Bank of Canada priced $4.01 million of trigger phoenix autocallable optimization securities due Aug. 31, 2012 linked to the American Depositary Shares of BHP Billiton Ltd, according to a 424B2 filing with the Securities and Exchange Commission.
If BHP ADSs closes at or above the trigger price - 70% of the initial price - on a quarterly observation date, the issuer will pay a contingent coupon of 14.4%.
If the ADSs close at or above the initial price on any observation date, the notes will be called at par of $10 plus the contingent coupon.
The payout at maturity will be par if the notes are not called and BHP ADSs finish at or above the trigger price.
If the ADSs finish below the trigger price, investors will be fully exposed to the decline.
UBS Financial Services Inc. and RBC Capital Markets, LLC are the underwriters.
| Issuer: | Royal Bank of Canada
|
| Issue: | Trigger phoenix autocallable optimization securities
|
| Underlying ADS: | BHP Billiton Ltd. (Symbol: BHP)
|
| Amount: | $4,009,970
|
| Maturity: | Aug. 31, 2012
|
| Coupon: | 14.4% if BHP ADSs close at or above the trigger price on any of four quarterly observation dates
|
| Price: | Par of $10.00
|
| Payout at maturity: | If BHP ADSs 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 ADS price: | $84.63
|
| Trigger price: | $59.24, 70% of initial ADS price
|
| Pricing date: | Aug. 29
|
| Settlement date: | Aug. 31
|
| Underwriters: | UBS Financial Services Inc. and RBC Capital Markets, LLC
|
| Fees: | 1.5%
|
| Cusip: | 78010W699
|
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