New Issue: RBC prices $2.5 million 19.25% reverse convertibles linked to Legg Mason

By Jennifer Chiou

New York, Dec. 20 - Royal Bank of Canada priced a $2.5 million issue of reverse convertible notes due March 27, 2008 linked to the common stock of Legg Mason, Inc., according to a 424B2 filing with the Securities and Exchange Commission.

The three-month notes will pay 4.8125% for an annualized rate of 19.25%. Interest is payable monthly.

The payout at maturity will be par unless Legg Mason 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 Legg Mason 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:	Legg Mason Inc. (Symbol: LM)
Amount:	$2.5 million
Maturity:	March 27, 2008
Coupon:	19.25% annualized, payable monthly
Price:	Par
Payout at maturity:	If Legg Mason shares close below the barrier price during the life of the notes and the final share price is less than the initial share price, a number of Legg Mason shares equal to $1,000 divided by the initial share price; otherwise, par
Initial share price:	$71.52
Barrier price:	$57.22, 80% of initial share price
Pricing date:	Dec. 19
Settlement date:	Dec. 27
Agent:	RBC Capital Markets Corp.
Fees:	1.25%

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