RBC to price notes linked to FTSE 100 Dividend index via Goldman Sachs

By Angela McDaniels

Tacoma, Wash., Feb. 28 - Royal Bank of Canada plans to price 0% index-linked notes due December 2013 linked to the FTSE 100 Dividend Index - RDSA Withholding via Goldman Sachs & Co., according to a 424B2 filing with the Securities and Exchange Commission.

The price of the notes is expected to be 100.75% to 101.75% of par.

The issuer expects to set the initial index level at 195 to 225, which is expected to be substantially higher than the actual closing level of the index on the pricing date.

The payout at maturity will be par plus the index return, which could be positive or negative.

The index is not an equity index. It represents solely the cumulative ordinary dividends paid on the 100 stocks that comprise the FTSE 100 index. No withholding tax adjustments are made to the amount of declared dividends, with the exception of dividends paid by the index stock issuer on Royal Dutch Shell A shares, from which a 15% withholding tax is deducted in accordance with the Luxembourg Treaty Rate.

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