New Issue: RBC prices $32.82 million one-year Stars linked to S&P 500 index

By Jennifer Chiou

New York, Jan. 29 - Royal Bank of Canada priced $32,817,900 of 0% Strategic Accelerated Redemption Securities due Feb. 5, 2014 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 6%. The observation dates are July 19, 2013, Oct. 18, 2013 and Jan. 29, 2014.

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:	$32,817,900
Maturity:	Feb. 5, 2014
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 6% per year if index closes at or above its initial level on any of three observation dates
Initial level:	1,494.82
Threshold level:	1,420.08, 95% of the starting value
Pricing date:	Jan. 24
Settlement date:	Feb. 4
Underwriter:	Bank of America Merrill Lynch
Fees:	1.25%
Cusip:	78011D856

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.