New Issue: RBC prices $462,000 10.5% reverse convertibles linked to Facebook

By Jennifer Chiou

New York, Oct. 31 - Royal Bank of Canada priced $462,000 of 10.5% annualized reverse convertible notes due Jan. 31, 2014 linked to Facebook, Inc. shares, according to a 424B2 filing with the Securities and Exchange Commission.

The payout at maturity will be par in cash unless Facebook shares fall below the protection price of $34.58, 70% of the initial price of $49.40, during the life of the notes and finish below the initial price in which case the payout will be Facebook shares equal to $1,000 principal amount divided by the initial price.

RBC Capital Markets, LLC is the agent.

Issuer:	Royal Bank of Canada
Issue:	Reverse convertible notes
Underlying stock:	Facebook, Inc. (Nasdaq: FB)
Amount:	$462,000
Maturity:	Jan. 31, 2014
Coupon:	10.5%, payable monthly
Price:	Par
Payout at maturity:	Par in cash unless Facebook shares fall below the protection price of $34.58, 70% of the initial price, and finish below the initial price, in which case Facebook shares equal to $1,000 principal amount divided by the initial price
Initial price:	$49.40
Protection price: $34.58, 70% of $49.40
Pricing date:	Oct. 29
Settlement date:	Oct. 31
Agent:	RBC Capital Markets, LLC
Fees:	1.75%
Cusip:	78010UGU5

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