New Issue: RBC sells $1.845 million 13.5% reverse convertibles linked to Western Union

By Jennifer Chiou

New York, Jan. 29 - Royal Bank of Canada priced $1.845 million of 13.5% reverse convertible notes due July 30, 2007 linked to Western Union Co. stock, according to a 424B2 filing with the Securities and Exchange Commission.

The payout at maturity will be par in cash if Western Union stock stays at or above the protection price, 80% of the initial share price of $21.07, between Jan. 25 and July 25 and finishes at or above the initial share price.

Otherwise, the payout will be in Western Union 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:	Western Union Co.
Amount:	$1.845 million
Maturity:	July 30, 2007
Coupon:	13.5%, payable quarterly
Price:	Par
Payout at maturity:	Par in cash if Western Union stock stays at or above the protection price of $16.86 and finishes at or above the initial price; otherwise 47.46084 shares of Western Union
Initial share price:	$21.07
Protection price:	$16.86, 80% of $21.07
Pricing date:	Jan. 25
Settlement date:	Jan. 30
Agent:	RBC Capital Markets Corp.
Agent fees:	1.25%

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