New Issue: RBC prices $685,000 13.75% reverse convertibles linked to U.S. Steel

By Susanna Moon

Chicago, Oct. 1 - Royal Bank of Canada priced $685,000 of 13.75% annualized reverse convertible notes due Dec. 30, 2013 linked to United States Steel Corp. shares, according to a 424B2 filing with the Securities and Exchange Commission.

Interest is payable monthly.

The payout at maturity will be par unless U.S. Steel stock closes below the 80% barrier level during the life of the notes and finishes below the initial share price, in which case the payout will be a number of U.S. Steel shares equal to $1,000 divided by the initial share price or, at RBC's option, the cash value.

RBC Capital Markets LLC is the agent.

Issuer:	Royal Bank of Canada
Issue:	Reverse convertible notes
Underlying stock:	United States Steel Corp. (Symbol: X)
Amount:	$685,000
Maturity:	Dec. 30, 2013
Coupon:	13.75%, payable monthly
Price:	Par
Payout at maturity:	Par unless U.S. Steel stock closes below barrier price during life of notes and finishes below initial share price, in which case U.S. Steel shares or, at RBC's option, cash amount equal to value of those shares
Initial share price:	$21.10
Barrier price:	$16.88, 80% of initial share price
Pricing date:	Sept. 26
Settlement date:	Sept. 30
Agent:	RBC Capital Markets LLC
Fees:	1.75%
Cusip:	78010UEV5

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