RBC plans to price 15% reverse convertibles linked to JPMorgan Chase

By Angela McDaniels

Tacoma, Wash., May 21 - Royal Bank of Canada plans to price reverse convertible notes due Aug. 31, 2009 linked to the common stock of JPMorgan Chase & Co., according to a 424B2 filing with the Securities and Exchange Commission.

The three-month notes will carry an annualized coupon of 15%. Interest will be payable monthly.

The payout at maturity will be par unless JPMorgan stock falls below the barrier price - 65% of the initial share price - during the life of the notes and finishes below the initial share price, in which case the payout will be a number of JPMorgan shares equal to $1,000 divided by the initial share price or, at RBC's option, the value of those shares in cash.

The notes will price May 26 and settle May 29.

RBC Capital Markets Corp. is the agent.

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