New Issue: RBC prices $70,000 21.5% reverse convertibles linked to Pulte Homes

By Laura Lutz

Des Moines, Feb. 11 - Royal Bank of Canada priced $70,000 of 21.5% reverse convertible notes due Feb. 13, 2009 linked to Pulte Homes, Inc. stock, according to a 424B2 filing with the Securities and Exchange Commission.

Interest is payable monthly.

If Pulte Homes stock falls below the protection price - 60% of the initial price - during the life of the notes and finishes below the initial price, the payout at maturity will be a number of Pulte Homes shares equal to par divided by the initial price.

Otherwise, the payout will be par in cash.

RBC Capital Markets Corp. is the agent.

Issuer:	Royal Bank of Canada
Issue:	Reverse convertible notes
Underlying stock:	Pulte Homes, Inc. (Symbol: PHM)
Amount:	$70,000
Maturity:	Feb. 13, 2009
Coupon:	21.5%, payable monthly
Price:	Par
Payout at maturity:	If Pulte stock falls below protection price during life of notes and finishes below initial price, Pulte shares equal to par divided by initial price; otherwise, par in cash
Initial price:	$14.49
Protection price:	$8.69, 60% of $14.49
Pricing date:	Feb. 8
Settlement date:	Feb. 13
Agent:	RBC Capital Markets Corp.
Fees:	2.75%

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