RBC plans one-year Stars linked to Whole Foods stock

By Marisa Wong

Madison, Wis., May 30 - Royal Bank of Canada plans to price 0% Strategic Accelerated Redemption Securities due June 2015 linked to Whole Foods Market Inc. shares, according to an FWP with the Securities and Exchange Commission.

If Whole Foods shares close at or above its initial level on any quarterly observation date, the notes will be called at par of $10 plus an annualized call premium of 15% to 19%. The exact call premium will be set at pricing.

If the notes are not called, the payout at maturity will be par unless the stock finishes below its initial level, in which case investors will be exposed to any losses.

BofA Merrill Lynch is the agent.

The notes will price and settle in June.

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