New Issue: RBC sells $1.2 million 16.5% reverse convertibles linked to Research in Motion

By Susanna Moon

Chicago, Oct. 1 - Royal Bank of Canada priced a $1.2 million issue of 16.5% reverse convertible notes due Jan. 4, 2008 linked to the common stock of Research in Motion Ltd., according to a 424B2 filing with the Securities and Exchange Commission.

Interest is payable monthly.

The payout at maturity will be par unless the stock falls by more than 35% during the life of the notes and finishes below the initial share price, in which case the payout will be a number of Research in Motion shares equal to $1,000 divided by the initial share price, or at RBC's election, the cash equivalent.

RBC Capital Markets Corp. is the agent.

Issuer:	Royal Bank of Canada
Issue:	Reverse convertible notes
Underlying stock:	Research in Motion Ltd. (Nasdaq: RIMM)
Amount:	$1.2 million
Maturity:	Jan. 4, 2008
Coupon:	16.5%, payable monthly
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 shares equal to $1,000 divided by the initial price; otherwise, par
Initial share price:	$99.85
Barrier price:	$64.90, or 65% of initial share price
Pricing date:	Sept. 27
Settlement date:	Oct. 4
Agent:	RBC Capital Markets Corp.
Fees:	1%

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