RBC to price autocallable optimization securities linked to Energy Select Sector SPDR via UBS

By E. Janene Geiss

Philadelphia, June 18 - Royal Bank of Canada plans to price 0% autocallable optimization securities with contingent protection due July 1, 2011 linked to the Energy Select Sector SPDR fund, according to an FWP filing with the Securities and Exchange Commission.

UBS Financial Services Inc. and RBC Capital Markets Corp. are the agents.

If the fund's shares close at or above the initial share price on any of the monthly observation dates, the notes will be automatically called and investors will receive par of $10 plus an annualized call premium of 15.5% to 19.5%. The exact call premium will be set at pricing.

The observation dates are July 26, 2010, Aug. 25, 2010, Sept. 24, 2010, Oct. 25, 2010, Nov. 23, 2010, Dec. 27, 2010, Jan. 25, 2011, Feb. 22, 2011, March 25, 2011, April 25, 2011, May 24, 2011 and June 24, 2011.

If the notes are not called and the final share price is greater than or equal to 75% of the initial price, the payout at maturity will be par. If the final share price is less than 75% of the initial price, the payout will be par plus the fund return.

The notes are expected to price June 25 and settle June 30.

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