New Issue: RBC prices $1.375 million 16.35% reverse convertibles linked to First Marblehead

By Angela McDaniels

Seattle, March 27 - Royal Bank of Canada priced a $1.375 million issue of reverse convertible notes due Sept. 28, 2007 linked to the common stock of the First Marblehead Corp., according to a 424B2 filing with the Securities and Exchange Commission.

The six-month notes will pay 8.175% for an annualized rate of 16.35%. Interest will be payable quarterly.

The payout at maturity will be par unless First Marblehead stock falls below the barrier price of $31.61 during the life of the notes and finishes below the initial share price of $45.15, in which case the payout will be a number of First Marblehead shares equal to $1,000 divided by the initial share price.

Issuer:	Royal Bank of Canada
Issue:	Reverse convertible notes
Underlying stock:	First Marblehead Corp.
Amount:	$1.375 million
Maturity:	Sept. 28, 2007
Coupon:	16.35%, payable quarterly
Price:	Par
Payout at maturity:	If First Marblehead stock falls below the barrier price during the life of the notes and finishes below the initial share price, 22.14839 First Marblehead shares; otherwise, par
Initial share price:	$45.15
Barrier price:	$31.61, 70% of initial share price
Pricing date:	March 23
Settlement date:	March 28
Agent:	RBC Capital Markets Corp.
Agent fees:	1.25%

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