New Issue: RBC prices $22.06 million six-month Stars linked to S&P 500 index

By Toni Weeks

San Diego, Oct. 3 - Royal Bank of Canada priced $22.06 million of 0% Strategic Accelerated Redemption Securities due Oct. 9, 2012 linked to the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.

If the index closes at or above its initial level on one of three observation dates, the notes will be called at par of $10 plus an annualized call premium of 17.86%. The observation dates are March 27, 2012, June 26, 2012 and Oct. 2, 2012.

If the notes are not called and the final index value is at least 95% of the initial value, the payout at maturity will be par. Investors will be exposed to losses beyond the 5% buffer.

Bank of America Merrill Lynch is the agent.

Issuer:	Royal Bank of Canada
Issue:	Strategic Accelerated Redemption Securities
Underlying index:	S&P 500
Amount:	$22,056,830
Maturity:	Oct. 9, 2012
Coupon:	0%
Price:	Par of $10
Payout at maturity:	Par if final level is at least 95% of initial level; otherwise, exposure to losses beyond 5% buffer
Call:	At par plus 17.86% per year if index closes at or above its initial level on any of three observation dates, March 27, 2012, June 26, 2012 and Oct. 2, 2012
Initial level:	1,160.40
Threshold level:	1,102.38, 95% of the starting value
Pricing date:	Sept. 29
Settlement date:	Oct. 6
Underwriter:	Bank of America Merrill Lynch
Fees:	1.25%
Cusip:	78008A774

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