New Issue: RBC prices $1.56 million 10% reverse convertibles linked to Rowan

By Angela McDaniels

Seattle, Oct. 2 - Royal Bank of Canada priced $1.56 million of reverse convertible notes due April 3, 2008 linked to the common stock of Rowan Cos., Inc., according to a 424B2 filing with the Securities and Exchange Commission.

The six-month notes will pay 5% for an annualized rate of 10%. Interest is payable monthly.

The payout at maturity will be par unless Rowan stock falls by 30% or more during the life of the notes and finishes below the initial share price, in which case the payout will be a number of Rowan shares equal to $1,000 divided by the initial share price or, at the bank's option, the equivalent cash value.

RBC Capital Markets Corp. is the agent.

Issuer:	Royal Bank of Canada
Issue:	Reverse convertible notes
Underlying stock:	Rowan Cos., Inc. (NYSE: RDC)
Amount:	$1.56 million
Maturity:	April 3, 2008
Coupon:	10%, payable monthly
Price:	Par
Payout at maturity:	If Rowan stock falls below the barrier price during the life of the notes and the final share price is less than the initial share price, 27.337 Rowan shares or equivalent cash value; otherwise, par
Initial share price:	$36.58
Barrier price:	$25.61, 70% of initial share price
Pricing date:	Sept. 28
Settlement date:	Oct. 3
Agent:	RBC Capital Markets Corp.
Fees:	1.5%

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