New Issue: RBC prices $317,000 11.25% reverse convertibles linked to Vertex

By Angela McDaniels

Tacoma, Wash., Aug. 20 – Royal Bank of Canada priced $317,000 of 11.25% annualized reverse convertible notes due Nov. 21, 2014 linked to the common stock of Vertex Pharmaceuticals Inc., according to a 424B2 filing with the Securities and Exchange Commission.

Interest is payable monthly.

The payout at maturity will be par in cash unless Vertex shares fall below the protection price, 80% of the initial share price, during the life of the notes and finish below the initial share price, in which case the payout will be a number of Vertex 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:	Vertex Pharmaceuticals Inc. (Symbol: VRTX)
Amount:	$317,000
Maturity:	Nov. 21, 2014
Coupon:	11.25%, payable monthly
Price:	Par
Payout at maturity:	Par in cash unless Vertex shares fall below protection price during life of notes and finish below initial share price, in which case Vertex shares equal to $1,000 divided by initial share price
Initial share price:	$91.30
Protection price:	$73.04, 80% of initial share price
Pricing date:	Aug. 18
Settlement date:	Aug. 21
Agent:	RBC Capital Markets LLC
Fees:	1.75%
Cusip:	78010UT56

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