RBC to price 12.5% buffered reverse convertibles linked to Bank of America

By Jennifer Chiou

New York, Jan. 8 - Royal Bank of Canada plans to price 12.5% annualized buffered reverse convertibles due April 20, 2009 linked to Bank of America Corp. stock, according to a 424B2 filing with the Securities and Exchange Commission.

Interest is payable monthly.

Payout at maturity will be par in cash unless the final price of Bank of America stock is less than the barrier price, 80% of the initial price.

In that case, the payout will be in Bank of America stock, with the number of shares equal to $1,000 divided by the initial price, plus an amount in cash equal to the principal amount times the 20% buffer amount.

The notes will price on Jan. 14 and settle on Jan. 20.

RBC Capital Markets Corp. is the underwriter.

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