RBC to price autocallable optimization securities linked to Energy Select Sector SPDR via UBS

By Marisa Wong

Madison, July 21 - Royal Bank of Canada plans to price 0% autocallable optimization securities with contingent protection due Aug. 2, 2011 linked to the Energy Select Sector SPDR fund, according to an FWP filing with the Securities and Exchange Commission.

If the fund's shares close at or above the initial share price on any of the monthly observation dates, the notes will be automatically called and investors will receive par of $10 plus an annualized call premium of 14% to 18%. The exact call premium will be set at pricing.

The observation dates are Aug. 25, Sept. 24, Oct. 25, Nov. 23, Dec. 27, Jan. 25, 2011, Feb. 22, 2011, March 25, 2011, April 25, 2011, May 24, 2011, June 24, 2011 and July 27, 2011.

If the notes are not called and the final share price is greater than or equal to 75% of the initial price, the payout at maturity will be par. If the final share price is less than 75% of the initial price, the payout will be par plus the fund return.

The notes (Cusip: 78009C852) are expected to price on July 27 and settle on July 30.

UBS Financial Services Inc. and RBC Capital Markets Corp. are the agents.

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