New Issue: RBC sells $9.06 million Stars tied to S&P 500, Russell via BofA Merrill

By Susanna Moon

Chicago, Nov. 4 - Royal Bank of Canada priced $9.06 million of 0% Strategic Accelerated Redemption Securities due Nov. 7, 2014 linked to a basket containing the S&P 500 index and the Russell 2000 index, equally weighted, according to a 424B2 filing with the Securities and Exchange Commission.

BofA Merrill Lynch is the agent.

The notes will be called at par of $10 plus an annualized call premium of 6% per year if the basket closes at or above its initial level on quarterly call date.

If the notes are not called, the payout at maturity will be par unless the basket falls by more than 5%, in which case investors will be exposed to any losses beyond 5%.

Issuer:	Royal Bank of Canada
Issue:	Strategic Accelerated Redemption Securities
Underlying basket:	S&P 500 index, Russell 2000 index
Amount:	$9,062,980
Maturity:	Nov. 7, 2014
Coupon:	0%
Price:	Par of $10
Payout at maturity:	Par unless basket falls by more than 5%, in which case exposure to any losses beyond 5%
Call:	At par plus 6% annualized if basket closes at or above initial level on any quarterly observation date
Pricing date:	Oct. 31
Settlement date:	Nov. 6
Underwriter:	BofA Merrill Lynch
Fees:	1.25%
Cusip:	78011D559

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