New Issue: RBC prices $559,000 14.64% reverse convertibles linked to Netflix

By Angela McDaniels

Tacoma, Wash., Oct. 28 - Royal Bank of Canada priced $559,000 of reverse convertible notes due Jan. 31, 2011 linked to the common stock of Netflix Inc., according to a 424B2 filing with the Securities and Exchange Commission.

The three-month notes carry an annualized coupon of 14.64%. Interest is payable monthly.

The payout at maturity will be par in cash unless Netflix shares fall below the protection price - 75% 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 Netflix shares equal to $1,000 divided by the initial price.

RBC Capital Markets Corp. is the agent.

Issuer:	Royal Bank of Canada
Issue:	Reverse convertible notes
Underlying stock:	Netflix Inc. (Nasdaq: NFLX)
Amount:	$559,000
Maturity:	Jan. 31, 2011
Coupon:	14.64%, payable monthly
Price:	Par
Payout at maturity:	Par unless Netflix shares fall below protection price during life of notes and finish below initial price, in which case 5.63 Netflix shares
Initial price:	$177.62
Protection price:	$133.22, 75% of initial price
Pricing date:	Oct. 26
Settlement date:	Oct. 29
Agent:	RBC Capital Markets Corp.
Fees:	2%
Cusip:	78008KRD7

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