New Issue: RBC prices $10.83 million Stars linked to Russell 2000 via BofA

By Angela McDaniels

Tacoma, Wash., Sept. 30 - Royal Bank of Canada priced $10.83 million of 0% Strategic Accelerated Redemption Securities due Oct. 6, 2014 linked to the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.

BofA Merrill Lynch is the agent.

If the index closes at or above its initial level on any observation date, the notes will be called at par of $10 plus an annualized call premium of 7.9%. The call dates are March 21, 2014, June 20, 2014 and Sept. 29, 2014.

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. Otherwise, investors will lose 1% for every 1% that the index declines beyond 5%.

Issuer:	Royal Bank of Canada
Issue:	Strategic Accelerated Redemption Securities
Underlying index:	Russell 2000
Amount:	$10,827,530
Maturity:	Oct. 6, 2014
Coupon:	0%
Price:	Par of $10
Payout at maturity:	Par if final index level is at least 95% of initial index level; otherwise, 1% loss for every 1% that index declines beyond 5%
Call:	At par plus 7.9% per year if index closes at or above initial level on March 21, 2014, June 20, 2014 or Sept. 29, 2014
Initial index level:	1,078.41
Pricing date:	Sept. 26
Settlement date:	Oct. 4
Underwriter:	BofA Merrill Lynch
Fees:	1.25%
Cusip:	78008Q886

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