New Issue: RBC prices $450,000 17.5% reverse convertibles linked to InterOil

By Angela McDaniels

Tacoma, Wash., April 11 - Royal Bank of Canada priced $450,000 of reverse convertible notes due July 12, 2011 linked to InterOil Corp. shares, according to a 424B2 filing with the Securities and Exchange Commission.

The three-month notes carry a coupon of 17.5% per year. Interest is payable monthly.

The payout at maturity will be par in cash unless InterOil shares fall below the protection price - 85% of the initial share price - during the life of the notes and finish below the initial price, in which case the payout will be a number of InterOil shares equal to $1,000 divided by the initial share price.

RBC Capital Markets, LLC is the agent.

Issuer:	Royal Bank of Canada
Issue:	Reverse convertible notes
Underlying stock:	InterOil Corp. (Symbol: IOC)
Amount:	$450,000
Maturity:	July 12, 2011
Coupon:	17.5%, payable monthly
Price:	Par
Payout at maturity:	Par unless InterOil shares fall below protection price during life of notes and finish below initial price, in which case 13.81979 InterOil shares
Initial price:	$72.36
Protection price:	$61.51, 85% of initial price
Pricing date:	April 7
Settlement date:	April 12
Agent:	RBC Capital Markets LLC
Fees:	1.25%
Cusip:	78008K5R0

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