RBC plans to sell 17.5% reverse convertibles linked to Vale stock

By Susanna Moon

Chicago, June 19 - Royal Bank of Canada plans to price 17.5% annualized reverse convertible notes due Sept. 30, 2009 linked to the common stock of Vale SA, according to a 424B2 filing with the Securities and Exchange Commission.

Interest will be payable monthly.

The payout at maturity will be par unless Vale stock falls below the barrier price - 75% 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 Vale 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 are expected to price on June 25 and settle on June 30.

RBC Capital Markets Corp. is the agent.

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