RBC to price 10.5% reverse convertible notes linked to Facebook

By Marisa Wong

Madison, Wis., Oct. 22 - Royal Bank of Canada plans to price reverse convertible notes due Jan. 31, 2014 linked to the common stock of Facebook, Inc., according to an FWP filing with the Securities and Exchange Commission.

The three-month notes will carry an annualized coupon of 10.5%. Interest will be payable monthly.

The payout at maturity will be par unless Facebook stock falls below the barrier price, 70% 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 Facebook shares equal to $1,000 divided by the initial share price or, at RBC's option, the value of those shares in cash.

RBC Capital Markets LLC is the agent.

The notes are expected to price Oct. 29 and settle Oct. 31.

The Cusip number is 78010UGU5.

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