New Issue: RBC prices $25.2 million Stars linked to S&P 500 index via Merrill

By Jennifer Chiou

New York, April 19 - Royal Bank of Canada priced $25.2 million of 0% Strategic Accelerated Redemption Securities due May 1, 2012 linked to the S&P 500 index, according to a 424B2 with the Securities and Exchange Commission.

If the index closes at or above the initial index level on any of three observation dates, the notes will be called at par of $10 plus a premium of 8.8% per year. The observation dates are Oct. 25, 2011, Jan. 24, 2012 and April 24, 2012.

The payout at maturity will be par if the final index level is at least 95% of the initial index level. Investors will be exposed to any decline below the threshold level.

Merrill Lynch is the agent.

Issuer:	Royal Bank of Canada
Issue:	Strategic Accelerated Redemption Securities
Underlying index:	S&P 500
Amount:	$25,197,170
Maturity:	May 1, 2012
Coupon:	0%
Price:	Par of $10
Payout at maturity:	Exposure to any losses beyond threshold of 95% of initial value
Call:	At par plus 8.8% if index closes at or above initial level on Oct. 25, 2011, Jan. 24, 2012 and April 24, 2012
Initial index level:	1,319.68
Pricing date:	April 15
Settlement date:	April 25
Agent:	Merrill Lynch
Fees:	1.25%
Cusip:	78009M827

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