New Issue: RBC prices $1.03 million 34.25% reverse convertibles linked to Palm

By Angela McDaniels

Tacoma, Wash., March 17 - Royal Bank of Canada priced $1.03 million of 34.25% annualized reverse convertible notes due June 18, 2010 linked to the common stock of Palm, Inc., according to a 424B2 filing with the Securities and Exchange Commission.

The payout at maturity will be par in cash unless Palm shares fall below the protection price - 65% of the initial share price - during the life of the notes and finish below the initial price, in which case the payout will be a number of Palm shares equal to $1,000 principal amount divided by the initial price.

RBC Capital Markets Corp. is the agent.

Issuer:	Royal Bank of Canada
Issue:	Reverse convertible notes
Underlying stock:	Palm, Inc. (Symbol: PALM)
Amount:	$1,025,000
Maturity:	June 18, 2010
Coupon:	34.25%, payable monthly
Price:	Par
Payout at maturity:	Par in cash unless Palm shares fall below the protection price during the life of the notes and finish below the initial price, in which case Palm shares equal to $1,000 divided by the initial price
Initial price:	$5.58
Protection price:	$3.63, 65% of initial price
Pricing date:	March 15
Settlement date:	March 18
Agent:	RBC Capital Markets Corp.
Fees:	1.5%
Cusip:	78008HZY9

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