New Issue: RBC prices $45,000 10.5% reverse convertibles linked to Tesoro

By Toni Weeks

San Luis Obispo, Calif., Dec. 17 - Royal Bank of Canada priced $45,000 of 10.5% reverse convertible notes due March 18, 2014 linked to Tesoro Corp. shares, according to a 424B2 filing with the Securities and Exchange Commission.

The payout at maturity will be par in cash unless Tesoro shares fall below the protection price, 80% of the initial price, during the life of the notes and finish below the initial price, in which case the payout will be Tesoro shares equal to $1,000 principal amount divided by the initial price.

RBC Capital Markets, LLC is the agent.

Issuer:	Royal Bank of Canada
Issue:	Reverse convertible notes
Underlying stock:	Tesoro Corp. (Symbol: TSO)
Amount:	$45,000
Maturity:	March 18, 2014
Coupon:	10.5%, payable monthly
Price:	Par
Payout at maturity:	Par in cash unless Tesoro shares fall below the protection price and finish below the initial price, in which case Tesoro shares equal to $1,000 principal amount divided by the initial price
Initial price:	$56.30
Protection price:	$45.04, 80% of initial price
Pricing date:	Dec. 13
Settlement date:	Dec. 18
Agent:	RBC Capital Markets, LLC
Fees:	1.75%
Cusip:	78010UKR7

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