RBC plans reverse convertibles tied to worst performing of four stocks

By Marisa Wong

Madison, Wis., Jan. 15 - Royal Bank of Canada plans to price 10% reverse convertible notes due Jan. 23, 2015 linked to the worst performing of four equity securities, according to an FWP filing with the Securities and Exchange Commission.

The four reference stocks are Baker Hughes Inc., Chevron Corp., Halliburton Co. and Exxon Mobil Corp.

Interest is payable at maturity or upon redemption.

The notes are callable at par plus accrued interest beginning on May 16.

The payout at maturity will be par unless any reference stock falls below the barrier price during the life of the notes and the final price of the worst performing stock is less than its initial price, in which case the payout will be a number of shares of the worst performing stock equal to $1,000 divided by that stock's initial share price or, at RBC's option, the cash value of those shares. The barrier price will be 70% of the initial price.

RBC Capital Markets, LLC is the agent.

The notes will price on Jan. 16 and settle on Jan. 23.

The Cusip number is 78010UNS2.

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