New Issue: RBC prices $2.096 million 16.5% notes linked to Netflix

By Angela McDaniels

Seattle, Jan. 30 - Royal Bank of Canada priced a $2.096 million offering of 16.5% reverse convertible notes due Jan. 31, 2008 linked to the common stock of Netflix Inc., according to a SUPPL filing with the Securities and Exchange Commission.

Interest is payable quarterly.

The payout at maturity will be par unless Netflix stock falls below the barrier price of $13.89 during the life of the notes and finishes below the initial share price of $23.15, in which case the payout will be a number of Netflix shares equal to $1,000 divided by the initial share price.

Issuer:	Royal Bank of Canada
Issue:	Reverse convertible medium-term notes, series C
Underlying stock:	Netflix Inc.
Amount:	$2.096 million
Maturity:	Jan. 31, 2008
Coupon:	16.5%, payable quarterly
Price:	Par
Payout at maturity:	Par if Netflix stock stays at or above the barrier price during the life of the notes and finishes at or above the initial share price; otherwise, 43.19654 Netflix shares
Initial share price:	$23.15
Barrier price:	$13.89, 60% of initial share price
Pricing date:	Jan. 26
Settlement date:	Jan. 31
Agent:	RBC Capital Markets Corp.
Agent fees:	2%

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