New Issue: RBC prices $400,000 24.5% reverse convertibles linked to Bear Stearns

By Susanna Moon

Chicago, Sept. 25 - Royal Bank of Canada priced a $400,000 issue of 24.5% reverse convertible notes due Dec. 28, 2007 linked to the common stock of the Bear Stearns Cos. Inc., according to a 424B2 filing with the Securities and Exchange Commission.

Interest is payable monthly.

The payout at maturity will be par unless the stock falls by more than 20% during the life of the notes and finishes below the initial share price, in which case the payout will be a number of Bear Stearns shares equal to $1,000 divided by the initial share price. Fractional shares will be paid in cash.

RBC Capital Markets Corp. is the agent.

Issuer:	Royal Bank of Canada
Issue:	Reverse convertible notes
Underlying stock:	Bear Stearns Cos. Inc. (NYSE: BSC)
Amount:	$400,000
Maturity:	Dec. 28, 2007
Coupon:	24.5%, payable monthly
Price:	Par
Payout at maturity:	If the stock falls below the barrier price during the life of the notes and finishes below the initial share price, a number of Bear Stearns shares equal to $1,000 divided by the initial price
Initial share price:	$117.32
Barrier price:	$93.86, or 80% of initial share price
Pricing date:	Sept. 21
Settlement date:	Sept. 28
Agent:	RBC Capital Markets Corp.
Fees:	1.25%

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