New Issue: RBC prices $5 million 6.85% cash-settled reverse convertible notes tied to two indexes

By Jennifer Chiou

New York, June 28 - Royal Bank of Canada priced $5 million of 6.85% cash-settled reverse convertible notes reverse convertible notes due March 31, 2015 linked to the worst-performing of the S&P 500 index and the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.

Interest is payable quarterly.

The notes will be called at par if both indexes close at or above their initial levels on any quarterly call date.

The payout at maturity will be par unless the worst-performing index finishes below its 70% barrier level, in which case the payout will be par plus the return of the worst-performing index.

RBC Capital Markets, LLC is the agent.

Issuer:	Royal Bank of Canada
Issue:	Cash-settled reverse convertible notes
Underlying indexes:	S&P 500 and Russell 2000
Amount:	$5 million
Maturity:	March 31, 2015
Coupon:	6.85%, payable quarterly
Price:	Par
Call:	At par if both indexes close at or above their initial levels on any quarterly call date
Payout at maturity:	Par unless worst-performing index finishes below barrier level, in which case par plus the return of the worst-performing index
Initial levels:	1,603.26 for S&P, 963.82 for Russell
Barrier levels:	1,122.28 for S&P, 674.67 for Russell; 70% of initial levels
Pricing date:	June 26
Settlement date:	July 1
Agent:	RBC Capital Markets, LLC
Fees:	0.5%
Cusip:	78008S4N3

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