New Issue: RBC prices $1.196 million 21.5% reverse convertibles linked to Arch Coal

By Susanna Moon

Chicago, July 31 - Royal Bank of Canada priced a $1.196 million issue of 21.5% annualized reverse convertible notes due Nov. 6, 2007 linked to the common stock of Arch Coal, Inc., according to a 424B2 filing with the Securities and Exchange Commission.

Interest is payable at maturity.

The payout at maturity, in addition to interest, will be par unless the stock falls by more than 20% during the life of the notes and finishes below the initial share price, in which case the payout will be a number of Arch Coal 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 agent.

Issuer:	Royal Bank of Canada
Issue:	Reverse convertible notes
Underlying stock:	Arch Coal, Inc.
Amount:	$1.196 million
Maturity:	Nov. 6, 2007
Coupon:	21.5%, payable at maturity
Price:	Par
Payout at maturity:	If the stock falls below the barrier price during the life of the notes and finishes below the initial share price, a number of Arch Coal shares equal to $1,000 divided by the initial share price or the equivalent cash value; otherwise, par
Initial share price:	$29.82
Barrier price:	$23.86, 80% of initial share price
Pricing date:	July 30
Settlement date:	Aug. 6
Agent:	RBC Capital Markets Corp.
Fees:	1.25%

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