New Issue: RBC prices $2.66 million contingent absolute return autocallables linked to Rackspace

By Toni Weeks

San Luis Obispo, Calif., March 11 - Royal Bank of Canada priced $2.66 million of 0% contingent absolute return autocallable optimization securities due March 16, 2015 linked to the common stock of Rackspace Hosting, Inc., according to a 424B2 filing with the Securities and Exchange Commission.

The notes will be called at par plus an annualized call premium of 11.7% if Rackspace stock closes at or above the initial share price on any quarterly observation date.

If the notes are not called and the final share price is greater than or equal to the trigger price, 65% of the initial share price, the payout at maturity will be par plus the absolute value of the stock return. Otherwise, investors will be fully exposed to the stock decline.

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

Issuer:	Royal Bank of Canada
Issue:	Contingent absolute return autocallable optimization securities
Underlying stock:	Rackspace Hosting, Inc. (Symbol: RAX)
Amount:	$2,664,100
Maturity:	March 16, 2015
Coupon:	0%
Price:	Par of $10.00
Payout at maturity:	If final share price is greater than or equal to trigger price, par plus absolute value of stock return; otherwise, full exposure to stock decline
Call:	At par plus 11.7% per year if Rackspace stock closes at or above initial share price on any quarterly observation date
Initial share price:	$38.65
Trigger price:	$25.12, 65% of initial share price
Pricing date:	March 7
Settlement date:	March 12
Agents:	UBS Financial Services Inc. and RBC Capital Markets, LLC
Fees:	1.5%
Cusip:	78010Y752

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