RBC plans 29.8% reverse convertibles linked to Wells Fargo

By Susanna Moon

Chicago, Sept. 30 - Royal Bank of Canada plans to price 29.8% annualized reverse convertible notes due Jan. 9, 2009 linked to the common stock of Wells Fargo & Co., according to a 424B2 filing with the Securities and Exchange Commission.

Interest will be payable monthly.

If Wells Fargo stock falls below the knock-in price - 65% 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 Wells Fargo shares equal to par divided by the initial price, or the equivalent value of the shares in cash, at the issuer's option.

Otherwise, the payout will be par.

The notes will price on Oct. 6 and settle on Oct. 9.

RBC Capital Markets Corp. will be the agent.

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