RBC to price 21.5% reverse convertibles linked to American Home Mortgage

By Jennifer Chiou

New York, June 4 - Royal Bank of Canada plans to price 21.5% annualized reverse convertible notes due Dec. 13, 2007 linked to the common stock of American Home Mortgage Investment Corp., according to a 424B2 filing with the Securities and Exchange Commission.

Interest will be payable quarterly.

At maturity, investors will receive par unless American Home Mortgage stock falls below the knock-in price - 60% of the initial share price - during the life of the notes and finishes below the initial share price, in which case the payout will be a number of American Home Mortgage shares equal to $1,000 divided by the initial share price.

The notes will price on June 8 and settle on June 13.

RBC Capital Markets Corp. will be the agent.

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