New Issue: RBC prices $8.76 million one-year Stars linked to Russell 2000

By Angela McDaniels

Tacoma, Wash., Sept. 1 - Royal Bank of Canada priced $8.76 million of 0% Strategic Accelerated Redemption Securities due Sept. 10, 2012 linked to the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.

The notes will be called at par of $10 plus a call premium of 17.87% per year if the index closes at or above the initial index level on Feb. 21, May 22, 2012 or Aug. 31, 2012.

If the notes are not called and the final index level is at least 95% of the initial index level, the payout at maturity will be par. Investors will lose 1% for every 1% that the index declines beyond 5%.

Bank of America Merrill Lynch is the agent.

Issuer:	Royal Bank of Canada
Issue:	Strategic Accelerated Redemption Securities
Underlying index:	Russell 2000
Amount:	$8,760,050
Maturity:	Sept. 10, 2012
Coupon:	0%
Price:	Par of $10
Payout at maturity:	Par if final index level is at least 95% of initial level; 1% loss for every 1% decline beyond 5%
Call:	Automatically at par plus 17.87% per year if index closes at or above initial index level on Feb. 21, May 22, 2012 or Aug. 31, 2012
Initial index level:	728.08
Pricing date:	Aug. 30
Settlement date:	Sept. 7
Agent:	Bank of America Merrill Lynch
Fees:	1.25%
Cusip:	78009M728

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