New Issue: RBC sells $4 million of 15% reverse convertibles linked to Arch

By Laura Lutz

Des Moines, June 4 - Royal Bank of Canada priced $4 million of 15% reverse convertible notes due Sept. 7, 2007 linked to Arch Coal, Inc. stock, according to a 424B2 filing with the Securities and Exchange Commission.

Payout at maturity will be par in cash if Arch stock stays at or above the protection price, 80% of the initial price of $40.38, during the life of the notes and finishes at or above the initial price.

Otherwise, the payout will be in Arch stock, with the number of shares equal to $1,000 divided by the initial share price.

Issuer:	Royal Bank of Canada
Issue:	Reverse convertible notes
Underlying stock:	Arch Coal, Inc.
Amount:	$4 million
Maturity:	Sept. 7, 2007
Coupon:	15%
Price:	Par
Payout at maturity:	Par in cash if Arch stock stays at or above the protection price of $32.30 and finishes at or above the initial price; otherwise shares of Arch stock equal to $1,000 divided by the initial price
Initial price:	$40.38
Protection price:	$32.30, 80% of $40.38
Pricing date:	May 31
Settlement date:	June 7
Agent:	RBC Capital Markets Corp.
Fees:	1.25%

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