New Issue: RBC prices $42,000 11.90% reverse convertibles linked to Fluor

By E. Janene Geiss

Philadelphia, Aug. 30 - Royal Bank of Canada priced a $42,000 issue of reverse convertible notes due Feb. 29, 2008 linked to the common stock of Fluor Corp., according to a 424B2 filing with the Securities and Exchange Commission.

The six-month notes will pay 5.95% for an annualized rate of 11.90%. Interest is payable monthly.

The payout at maturity will be par unless Fluor stock falls by more than 20% during the life of the notes and finishes below the initial share price, in which case the payout will be a number of Fluor 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:	Fluor Corp. (Symbol: FLR)
Amount:	$42,000
Maturity:	Feb. 29, 2008
Coupon:	11.90%, payable monthly
Price:	Par
Payout at maturity:	If Fluor shares close below the barrier price of $95.33 during the life of the notes and the final share price is less than the initial share price, 8.392 Fluor shares; otherwise, par
Initial share price:	$119.16
Barrier price:	$95.33, 80% of initial share price
Pricing date:	Aug. 28
Settlement date:	Aug. 31
Agent:	RBC Capital Markets Corp.
Fees:	1.75%

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