RBC plans to price 10.25% reverse convertibles linked to Seagate

By Jennifer Chiou

New York, Jan. 9 - Royal Bank of Canada plans to price reverse convertible notes due July 17, 2014 linked to the common stock of Seagate Technology plc, according to a 424B2 filing with the Securities and Exchange Commission.

The six-month notes will carry an annualized coupon of 10.25%. Interest will be payable monthly.

The payout at maturity will be par unless Seagate 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 Seagate 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: 78010UNN3) are expected to price on Jan. 15 and settle on Jan. 17.

RBC Capital Markets LLC is the agent.

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