New Issue: RBC sells $310,000 11.4% reverse convertibles linked to Thornburg Mortgage

By Jennifer Chiou

New York, March 30 - Royal Bank of Canada priced $310,000 of 11.4% reverse convertible notes due March 31, 2008 linked to Thornburg Mortgage, Inc. stock, according to a 424B2 filing with the Securities and Exchange Commission.

The payout at maturity will be par in cash if Thornburg Mortgage stock stays at or above the protection price - 80% of the initial share price of $25.77 - during the life of the notes and finishes at or above the initial share price.

Otherwise, the payout will be in Thornburg Mortgage stock, with the number of shares equal to $1,000 divided by the initial share price.

Issuer:	Royal Bank of Canada
Issue:	Reverse convertible notes
Underlying stock:	Thornburg Mortgage, Inc.
Amount:	$310,000
Maturity:	March 31, 2008
Coupon:	11.4%, payable quarterly
Price:	Par
Payout at maturity:	Par in cash if Thornburg Mortgage stock stays at or above the protection price and finishes at or above the initial share price; otherwise, a number of Thornburg Mortgage shares equal to $1,000 principal amount divided by the initial price
Initial share price:	$25.77
Protection price:	$20.62, 80% of $25.77
Pricing date:	March 27
Settlement date:	March 30
Agent:	RBC Capital Markets Corp.
Fees:	2%

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