RBC to price one-year Stars linked to S&P 500 index via BofA

By Angela McDaniels

Tacoma, Wash., July 25 – Royal Bank of Canada plans to price 0% Strategic Accelerated Redemption Securities due September 2015 linked to the S&P 500 index, according to an FWP filing with the Securities and Exchange Commission.

Beginning six months after issuance, the notes will be automatically called at par of $10 plus an annualized call premium of 6% to 10% if the index closes at or above its initial level on any quarterly observation date. The exact call premium will be set at pricing.

If the notes are not called, investors will have one-to-one exposure to the index’s decline.

BofA Merrill Lynch is the agent.

The notes will price in August and settle in September.

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