New Issue: RBC prices $899,000 13.5% reverse convertibles linked to Micron Technology

By Angela McDaniels

Tacoma, Wash., Aug. 20 – Royal Bank of Canada priced $899,000 of 13.5% annualized reverse convertible notes due Nov. 21, 2014 linked to the common stock of Micron Technology, Inc., according to a 424B2 filing with the Securities and Exchange Commission.

Interest is payable monthly.

The payout at maturity will be par in cash unless Micron Technology shares fall below the protection price, 80% of the initial share price, during the life of the notes and finish below the initial share price, in which case the payout will be a number of Micron Technology shares equal to $1,000 divided by the initial share price.

RBC Capital Markets LLC is the agent.

Issuer:	Royal Bank of Canada
Issue:	Reverse convertible notes
Underlying stock:	Micron Technology, Inc. (Symbol: MU)
Amount:	$899,000
Maturity:	Nov. 21, 2014
Coupon:	13.5%, payable monthly
Price:	Par
Payout at maturity:	Par in cash unless Micron Technology shares fall below protection price during life of notes and finish below initial share price, in which case Micron Technology shares equal to $1,000 divided by initial share price
Initial share price:	$32.04
Protection price:	$25.63, 80% of initial share price
Pricing date:	Aug. 18
Settlement date:	Aug. 21
Agent:	RBC Capital Markets LLC
Fees:	1.75%
Cusip:	78010UT49

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