RBC to price 10% reverse convertible notes linked to Goodyear

By Jennifer Chiou

New York, Oct. 22 - Royal Bank of Canada plans to price reverse convertible notes due April 30, 2014 linked to the common stock of Goodyear Tire & Rubber Co., according to an FWP with the Securities and Exchange Commission.

The six-month notes will carry an annualized coupon of 10%. Interest will be payable monthly.

The payout at maturity will be par unless Goodyear stock falls below the barrier price, 80% 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 Goodyear 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 (Cusip: 78010UGY7) are expected to price on Oct. 29 and settle on Oct. 31.

RBC Capital Markets LLC is the agent.

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