New Issue: RBC prices $15.65 million one-year Stars linked to S&P 500

By Toni Weeks

San Luis Obispo, Calif., April 24 - Royal Bank of Canada priced $15.65 million of 0% Strategic Accelerated Redemption Securities due May 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 6.5%. The observation dates are Oct. 18, Jan. 17, 2014 and April 28, 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.

BofA Merrill Lynch is the agent.

Issuer:	Royal Bank of Canada
Issue:	Strategic Accelerated Redemption Securities
Underlying index:	S&P 500
Amount:	$15,648,380
Maturity:	May 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 6.5% per year if index closes at or above its initial level on any of three observation dates (Oct. 18, Jan. 17, 2014 and April 28, 2014)
Initial level:	1,562.5
Threshold level:	1,484.38, 95% of initial level
Pricing date:	April 22
Settlement date:	April 29
Agent:	BofA Merrill Lynch
Fees:	1.25%
Cusip:	78008Q704

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