New Issue: RBC prices $1 million 8.75% reverse convertible notes linked to BHP

By Tali Rackner

Norfolk, Va., Jan. 22 – Royal Bank of Canada priced $1 million of 8.75% reverse convertible notes due Feb. 5, 2019 linked to the American Depositary Shares of BHP Billiton Ltd., according to a 424B2 filing with the Securities and Exchange Commission.

Interest is payable annually.

The payout at maturity will be par unless BHP stock falls by 40% or more, in which case the payout will be a number of BHP shares equal to par divided by the initial share price or, at the issuer's option, the value of those shares in cash.

RBC Capital Markets, LLC is the agent.

Issuer:	Royal Bank of Canada
Issue:	Reverse convertible notes
Underlying stock:	BHP Billiton Ltd. (Symbol: BHP)
Amount:	$1 million
Maturity:	Feb. 5, 2019
Coupon:	8.75%, payable annually
Price:	Par of $1,000
Payout at maturity:	Par unless BHP stock falls below barrier price, in which case 47.62 BHP shares or equivalent amount in cash
Initial share price:	$21
Barrier price:	$12.60, 60% of initial price
Pricing date:	Jan. 21
Settlement date:	Feb. 4
Agent:	RBC Capital Markets, LLC
Fees:	1.75%
Cusip:	78013GAN5

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