RBC to price 12.25% RevCons linked to Microsoft

By Angela McDaniels

Tacoma, Wash., April 2 - Royal Bank of Canada plans to price reverse convertible notes due July 17, 2009 linked to the common stock of Microsoft Corp., according to a 424B2 filing with the Securities and Exchange Commission.

The three-month notes will carry an annualized coupon of 12.25%. Interest will be payable monthly.

The payout at maturity will be par unless Microsoft 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 Microsoft shares equal to $1,000 divided by the initial share price or, at RBC's option, the value of those shares in cash.

The notes are expected to price April 14 and settle April 17.

RBC Capital Markets Corp. is the agent.

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