New Issue: RBC prices $763,000 9% airbag yield optimization notes on Pultegroup

By Marisa Wong

Madison, Wis., Feb. 14 - Royal Bank of Canada priced $763,000 of 9% annualized airbag yield optimization notes due Aug. 16, 2012 linked to the common stock of Pultegroup, Inc., according to a 424B2 filing with the Securities and Exchange Commission.

Interest is 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 Pultegroup shares equal to $1,000 divided by the conversion price. The conversion price is 75% of the initial share price.

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

Issuer:	Royal Bank of Canada
Issue:	Airbag yield optimization notes
Underlying stock:	Pultegroup, Inc. (Symbol: PHM)
Amount:	$763,000
Maturity:	Aug. 16, 2012
Coupon:	9%, payable monthly
Price:	Par
Payout at maturity:	If final share price is less than conversion price, number of Pultegroup shares equal to $1,000 divided by conversion price; otherwise, par
Initial share price:	$8.79
Conversion price:	$6.59, 75% of initial share price
Pricing date:	Feb. 10
Settlement date:	Feb. 15
Underwriters:	UBS Financial Services Inc. and RBC Capital Markets LLC
Fees:	1%
Cusip:	78008C309

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