New Issue: RBC prices $1.41 million 11.75% reverse convertibles linked to Ford

By Angela McDaniels

Tacoma, Wash., Feb. 24 - Royal Bank of Canada priced $1.41 million of reverse convertible notes due May 28, 2010 linked to the common stock of Ford Motor Co., according to a 424B2 filing with the Securities and Exchange Commission.

The three-month notes carry an annualized coupon of 11.75%. Interest is payable monthly.

The payout at maturity will be par in cash unless Ford shares fall below the barrier price - 70% of the initial price - during the life of the notes and finish below the initial price, in which case the payout will be a number of Ford shares equal to $1,000 divided by the initial price or, at RBC's option, the value of those shares in cash.

RBC Capital Markets Corp. is the agent.

Issuer:	Royal Bank of Canada
Issue:	Reverse convertible notes
Underlying stock:	Ford Motor Co. (Symbol: F)
Amount:	$1,411,000
Maturity:	May 28, 2010
Coupon:	11.75%, payable monthly
Price:	Par
Payout at maturity:	Par in cash unless Ford shares fall below barrier price during life of notes and finish below initial price, in which case 89.20607 Ford shares or an equivalent amount in cash
Initial price:	$11.21
Barrier price:	$7.85, 70% of initial price
Pricing date:	Feb. 22
Settlement date:	Feb. 26
Agent:	RBC Capital Markets Corp.
Fees:	1.25%
Cusip:	78008HYW4

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