RBC plans 15.15% reverse convertibles linked to Bank of America

By Susanna Moon

Chicago, Sept. 10 - Royal Bank of Canada plans to price 15.15% annualized reverse convertible notes due Sept. 30, 2009 linked to the common stock of Bank of America Corp., according to a 424B2 filing with the Securities and Exchange Commission.

Interest will be payable monthly.

If Bank of America stock falls below the knock-in price - 60% 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 Bank of America 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 Sept. 25 and settle on Sept. 30.

RBC Capital Markets Corp. will be the agent.

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