New Issue: RBC prices $107,000 10.25% reverse convertibles linked to Chesapeake Energy

New York, May 30 - Royal Bank of Canada priced $107,000 of 10.25% reverse convertible notes due Nov. 29, 2013 linked to Chesapeake Energy Corp. shares, according to a 424B2 filing with the Securities and Exchange Commission.

The payout at maturity will be par in cash unless Chesapeake Energy shares fall below the protection price of $17.73, 80% of the initial price of $22.16, during the life of the notes and finish below the initial price in which case the payout will be Chesapeake Energy 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:	Chesapeake Energy Corp. (Symbol: CHK)
Amount:	$107,000
Maturity:	Nov. 29, 2013
Coupon:	10.25%, payable monthly
Price:	Par
Payout at maturity:	Par in cash unless Chesapeake Energy shares fall below the protection price of $17.73, 80% of the initial price, and finish below the initial price, in which case Chesapeake Energy shares equal to $1,000 principal amount divided by the initial price
Initial price:	$22.16
Protection price:	$17.73, 80% of $22.16
Pricing date:	May 28
Settlement date:	May 31
Agent:	RBC Capital Markets Corp.
Fees:	2%
Cusip:	78008SY67

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