RBC to price enhanced return bear notes inversely linked to S&P 500

By Angela McDaniels

Tacoma, Wash., Dec. 17 - Royal Bank of Canada plans to price an offering of 0% enhanced return bear notes due Jan. 30, 2009 linked to the S&P 500 index, according to a 424B5 filing with the Securities and Exchange Commission.

If the final index level is less than the initial index level, the payout at maturity will be par plus 4% for each 1% index decline, subject to a maximum return that is expected to be 33.25% to 37.25% and will be determined at pricing.

If the final index level is greater than the initial index level, the payout will be par minus 1% for each 1% index gain, subject to a maximum loss of 80%.

The notes will price on Dec. 27 and settle on Dec. 31.

RBC Capital Markets Corp. will be the underwriter.

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