New Issue: RBC prices $500,000 12.05% reverse convertibles linked to PotashCorp

By Angela McDaniels

Tacoma, Wash., Aug. 27 - Royal Bank of Canada priced $500,000 of 12.05% annualized reverse convertible notes due Dec. 9, 2013 linked to the common stock of Potash Corp. of Saskatchewan Inc., according to a 424B2 filing with the Securities and Exchange Commission.

The payout at maturity will be par in cash unless PotashCorp shares fall below the protection price, 80% of the initial share price, during the life of the notes and finish below the initial price, in which case the payout will be PotashCorp shares equal to $1,000 divided by the initial share price.

RBC Capital Markets LLC is the underwriter.

Issuer:	Royal Bank of Canada
Issue:	Reverse convertible notes
Underlying stock:	Potash Corp. of Saskatchewan Inc. (Symbol: POT)
Amount:	$500,000
Maturity:	Dec. 9, 2013
Coupon:	12.05%, payable monthly
Price:	Par
Payout at maturity:	Par in cash unless PotashCorp shares fall below protection price during life of notes and finish below initial price, in which case PotashCorp shares equal to $1,000 principal amount divided by initial price
Initial share price:	$29.86
Protection price:	$23.89, 80% of initial share price
Pricing date:	Aug. 23
Settlement date:	Sept. 6
Underwriter:	RBC Capital Markets LLC
Fees:	None
Cusip:	78010UBP1

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