RBC plans 13.25% reverse convertibles linked to Apple

By Jennifer Chiou

New York, July 10 - Royal Bank of Canada plans to price 13.25% annualized reverse convertible notes due Jan. 30, 2009 linked to the common stock of Apple Inc., according to a 424B2 filing with the Securities and Exchange Commission.

Interest will be payable monthly.

If Apple stock falls below the knock-in price - 70% of the initial share price - during the life of the notes and finishes below the initial price, the payout at maturity will be a number of Apple shares equal to par divided by the initial price, or the equivalent value of the shares in cash, at the issuer's option.

Otherwise, the payout will be par.

The notes will price on July 28 and settle on July 31.

RBC Capital Markets Corp. will be the agent.

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