RBC to price 7%-9.4% airbag yield optimization notes linked to Ford

By Angela McDaniels

Tacoma, Wash., Jan. 3 - Royal Bank of Canada plans to price airbag yield optimization notes due July 12, 2012 linked to the common stock of Ford Motor Co., according to an FWP filing with the Securities and Exchange Commission.

The six-month notes will carry a coupon of 7% to 9.4% per year. The exact coupon will be set at pricing. Interest will be payable monthly.

The payout at maturity will be par unless the final share price is less than the conversion price, in which case the payout will be a number of Ford shares equal to $1,000 divided by the conversion price. The conversion price will be 85% of the initial share price.

The notes (Cusip: 78010V758) will price Jan. 6 and settle Jan. 11.

UBS Financial Services Inc. and RBC Capital Markets, LLC are the underwriters.

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