RBC plans 14.25% reverse convertibles linked to Fastenal

By Susanna Moon

Chicago, Dec. 12 - Royal Bank of Canada plans to price 14.25% reverse convertible notes due March 31, 2009 linked to the common stock of Fastenal Co., according to a 424B2 filing with the Securities and Exchange Commission.

Interest will be payable monthly.

If the stock falls below the knock-in price - 80% of the initial share price - during the life of the notes and finishes below the initial price, payout at maturity will be a number of Fastenal shares equal to par divided by the initial price, or the cash equivalent, at the issuer's option.

Otherwise, the payout will be par.

The notes will price on Dec. 29 and settle on Dec. 31.

RBC Capital Markets Corp. will be the agent.

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