New Issue: RBC sells $2.09 million 17% reverse convertibles linked to Wal-Mart

By Susanna Moon

Chicago, Nov. 10 - Royal Bank of Canada priced $2.09 million of 17% reverse convertible notes due Feb. 13, 2009 linked to the common stock of Wal-Mart Stores, Inc., according to a 424B2 filing with the Securities and Exchange Commission.

Interest is payable monthly.

If Wal-Mart stock falls below the knock-in price - 70% of the initial share price - during the life of the notes and finishes below the initial price, the payout at maturity will be a number of Wal-Mart shares equal to par divided by the initial price, or the cash equivalent, at the issuer's option.

Otherwise, the payout will be par.

RBC Capital Markets Corp. is the agent.

Issuer:	Royal Bank of Canada
Issue:	Reverse convertible notes
Underlying stock:	Wal-Mart Stores, Inc. (Symbol: WMT)
Amount:	$2,089,000
Maturity:	Feb. 13, 2009
Coupon:	17%, payable monthly
Price:	Par
Payout at maturity:	Par in cash unless the stock falls below the protection price during the life of the notes and finishes below the initial price, in which case Wal-Mart shares equal to $1,000 principal amount divided by the initial price
Initial price:	$54.39
Protection price:	$38.07, or 70% of initial price
Pricing date:	Nov. 7
Settlement date:	Nov. 13
Agent:	RBC Capital Markets Corp.
Fees:	1.625%

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