New Issue: RBC sells $5,000 16.5% reverse convertibles linked to First Marblehead

By E. Janene Geiss

Philadelphia, June 27 - Royal Bank of Canada priced $5,000 of reverse convertible notes due Dec. 31, 2007 linked to The First Marblehead Corp. stock, according to a 424B2 filing with the Securities and Exchange Commission.

The six-month notes will pay 8.25% for an annualized rate of 16.5%. Interest is payable monthly.

The payout at maturity will be par in cash if First Marblehead stock stays at or above the protection price of $28.80 - 75% of the initial price - during the life of the notes and finishes at or above the initial share price. Otherwise, the payout will be in First Marblehead stock, with the number of 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:	The First Marblehead Corp.
Amount:	$5,000
Maturity:	Dec. 31, 2007
Coupon:	16.5%, payable monthly
Price:	Par
Payout at maturity:	Par in cash if First Marblehead stock stays at or above the protection price of $28.80 during the life of the notes and finishes at or above the initial share price; otherwise, the number of First Marblehead shares equal to $1,000 divided by the initial share price
Initial share price:	$38.40
Protection price:	$28.80, 75% of $38.40
Pricing date:	June 26
Settlement date:	June 29
Agent:	RBC Capital Markets Corp.
Fees:	1.5%

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