New Issue: RBC prices $135,000 14.6% reverse convertibles linked to Facebook

By Toni Weeks

San Luis Obispo, Calif., Sept. 30 - Royal Bank of Canada priced $135,000 of reverse convertible notes due March 28, 2014 linked to the common stock of Facebook, Inc., according to a 424B2 filing with the Securities and Exchange Commission.

The six-month notes carry an annualized coupon of 14.6%. Interest is payable monthly.

The payout at maturity will be par unless Facebook stock closes below the barrier price, 75% 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.

Issuer:	Royal Bank of Canada
Issue:	Reverse convertible notes
Underlying stock:	Facebook, Inc. (Symbol: FB)
Amount:	$135,000
Maturity:	March 28, 2014
Coupon:	14.6%, payable monthly
Price:	Par
Payout at maturity:	Par unless Facebook stock closes below barrier price during life of notes and finishes below initial share price, in which case number of Facebook shares equal to $1,000 divided by initial share price or, at RBC's option, the cash value of those shares
Initial share price:	$50.39
Barrier price:	$37.79, 75% of initial share price
Pricing date:	Sept. 26
Settlement date:	Sept. 30
Agent:	RBC Capital Markets LLC
Fees:	2%
Cusip:	78010UEX1

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