New Issue: RBC prices $755,000 15% reverse convertibles linked to General Electric

By Susanna Moon

Chicago, Oct. 7 - Royal Bank of Canada priced $755,000 of 15% annualized reverse convertible notes due Jan. 9, 2009 linked to General Electric Co. shares, according to a 424B2 filing with the Securities and Exchange Commission.

Interest is payable monthly.

Payout at maturity will be par in cash unless General Electric stock falls below the protection price - 65% of the initial price - during the life of the notes and finishes below the initial price, in which case the payout will be a number of General Electric shares equal to $1,000 principal amount divided by the initial price.

RBC Capital Markets Corp. is the agent.

Issuer:	Royal Bank of Canada
Issue:	Reverse convertible notes
Underlying stock:	General Electric Co. (Symbol: GE)
Amount:	$755,000
Maturity:	Jan. 9, 2009
Coupon:	15%, payable monthly
Price:	Par
Payout at maturity:	Par in cash unless the stock falls below the protection price during the life of the notes and finishes below the initial price, in which case General Electric shares equal to $1,000 principal amount divided by the initial price
Initial price:	$21.38
Protection price:	$16.04, or 65% of initial price
Pricing date:	Oct. 6
Settlement date:	Oct. 9
Agent:	RBC Capital Markets Corp.
Fees:	1.625%

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