RBC to price trigger phoenix autocallable optimization securities linked to Silver Wheaton stock

By Jennifer Chiou

New York, May 10 - Royal Bank of Canada plans to price 0% trigger phoenix autocallable optimization securities due May 17, 2012 linked to the common stock of Silver Wheaton Corp., according to an FWP with the Securities and Exchange Commission.

If the price of Silver Wheaton stock closes at or above the trigger price - 55% of the initial share price - on any of four quarterly observation dates, the issuer will pay a contingent coupon of 13% to 16%. The exact rate will be set at pricing.

If the share price is greater than or equal to the initial price on any of the observation dates, the notes will be called at par of $10 plus the contingent coupon.

If the notes are not called and the Silver Wheaton share price finishes at or above the trigger price, the payout at maturity will be par. Otherwise, investors will be exposed to any share price decline.

The securities (Cusip: 78009C373) are expected to price on May 13 and settle on May 18.

RBC Capital Markets Corp. is the agent.

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