New Issue: RBC prices $234,000 18.8% reverse convertibles linked to Fannie Mae

By Susanna Moon

Chicago, March 17 - Royal Bank of Canada priced $234,000 of 18.8% reverse convertible notes due Sept. 19, 2008 linked to Fannie Mae stock, according to a 424B2 filing with the Securities and Exchange Commission.

Interest is payable monthly.

Payout at maturity will be par in cash unless the stock falls below its protection price - 60% of the initial share price - during the life of the notes and finishes below the initial share price, in which case investors will receive a number of Fannie Mae shares equal to $1,000 divided by the initial share price.

RBC Capital Markets Corp. is the agent.

Issuer:	Royal Bank of Canada
Issue:	Reverse convertible notes
Underlying stock:	Fannie Mae (NYSE: FNM)
Amount:	$234,000
Maturity:	Sept. 19, 2008
Coupon:	18.8%, payable monthly
Price:	Par
Payout at maturity:	Par in cash if the stock stays at or above the protection price during the life of the notes or finishes at or above the initial price; otherwise a number of shares of Fannie Mae stock equal to $1,000 divided by the initial share price
Initial share price:	$22.36
Protection price:	$13.42, or 60% of initial share price
Pricing date:	March 14
Settlement date:	March 19
Agent:	RBC Capital Markets Corp.
Fees:	1.5%

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