RBC plans 26.75% reverse convertibles tied to Fuel Systems Solutions

By Susanna Moon

Chicago, March 8 - Royal Bank of Canada plans to price 26.75% annualized reverse convertible notes due June 15, 2010 based on Fuel Systems Solutions Inc. shares, according to a 424B2 filing with the Securities and Exchange Commission.

Interest will be payable monthly.

The payout at maturity will be par unless the stock falls below the barrier price - 75% of the initial share price - during the life of the notes and finishes below the initial share price, in which case the payout will be a number of Fuel Systems shares equal to $1,000 divided by the initial share price or, at RBC's option, the cash equivalent.

The notes are expected to price on March 15 and settle on March 18.

RBC Capital Markets Corp. is the agent.

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