-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, AszbNEgAJ6N90kws4856oM7lHy5y6pdbHza4Gg1nIZ+5F+ha5hCVZMVtl0HgiBk/ fELLEc862vP3HLz6nar4/A== 0001214659-08-000813.txt : 20080410 0001214659-08-000813.hdr.sgml : 20080410 20080410095450 ACCESSION NUMBER: 0001214659-08-000813 CONFORMED SUBMISSION TYPE: 424B5 PUBLIC DOCUMENT COUNT: 1 FILED AS OF DATE: 20080410 DATE AS OF CHANGE: 20080410 FILER: COMPANY DATA: COMPANY CONFORMED NAME: ROYAL BANK OF CANADA \ CENTRAL INDEX KEY: 0001000275 STANDARD INDUSTRIAL CLASSIFICATION: COMMERCIAL BANKS, NEC [6029] IRS NUMBER: 000000000 FISCAL YEAR END: 1031 FILING VALUES: FORM TYPE: 424B5 SEC ACT: 1933 Act SEC FILE NUMBER: 333-139359 FILM NUMBER: 08748938 BUSINESS ADDRESS: STREET 1: P O BOX 1 STREET 2: ROYAL BANK PLAZA CITY: TORONTO STATE: A6 ZIP: 00000 BUSINESS PHONE: 4169745151 MAIL ADDRESS: STREET 1: P O BOX 6001 STREET 2: MONTREAL QUEBEC CITY: H3C 3A9 424B5 1 t4980424b5.txt CLN 29 The information in this preliminary pricing supplement is not complete and may be changed. This preliminary pricing supplement is not an offer to sell these securities nor does it seek an offer to buy these securities in any jurisdiction where the offer or sale is not permitted Preliminary Pricing Supplement SUBJECT TO COMPLETION April 9, 2008 Pricing Supplement dated April __, 2008 to the Product Prospectus Supplement dated January 7, 2008, the Prospectus dated January 5, 2007 and the Prospectus Supplement dated February 28, 2007 [RBC LOGO] $ Royal Bank of Canada Principal Protected Commodity Linked Notes, due April 30, 2013 Royal Bank of Canada is offering the principal protected notes whose return is linked to the performance of the Reference Assets described below, which may be described in greater detail in the reference asset supplement attached to the product prospectus supplement as Annex A (the "reference asset supplement"). The prospectus dated January 5, 2007, the prospectus supplement dated February 28, 2007 and the product prospectus supplement dated January 7, 2008 describe terms that will apply generally to the principal protected notes, including any notes you purchase. Capitalized terms used but not defined in this pricing supplement shall have the meanings given to them in the product prospectus supplement. In the event of any conflict, this pricing supplement will control. Issuer: Royal Bank of Canada ("Royal Bank"). Issue: Senior Global Medium-Term Notes, Series C Underwriter: RBC Capital Markets Corporation Interest rate We will not pay you interest during the term of (coupon): the notes. Principal Protection: 100%, if held to maturity Reference Assets: The payment at maturity on the Notes are linked to the value of a weighted basket (the "Basket") consisting of five commodities (each a "Basket Commodity", and together, the "Basket Commodities"). Such weightings will be achieved by providing a Component Weight for each Basket Commodity.
Commodity Component Weight Initial Prices --------- ---------------- -------------- NYMEX WTI Light Sweet Crude Oil 30.00% NYMEX Natural Gas 30.00% LME Copper 30.00% LME Nickel 5.00% London Platinum PM Fixing 5.00%
Incorporated risk The notes are subject to the risks set forth under factors: the heading "General Risks" in the product prospectus supplement. In addition to those General Risks, the notes are also subject to the risks described in the product prospectus supplement on PS-6 in the section entitled "Risks Specific To Notes Linked To The Performance Of A Commodity, A Commodities Index Or A Basket Of Commodities or Commodities Indices." Initial Valuation April 28, 2008 Date: Issue Date: April 30, 2008 Maturity Date: April 30, 2013 Payment at Maturity: At maturity, you will receive a cash payment based on the bullish formula regarding a basket return, as described in the product supplement. Term: The term of your notes is approximately 5 years. Reference Asset The Reference Asset Performance is based on a Performance: weighted return of the Reference Assets. Participation Rate: 100% Special features of The notes are principal protected commodity linked the notes: notes offering full participation in the performance of the Reference Assets at maturity. If the performance of the Reference Assets is zero or negative, the return on the notes will be limited to the principal amount. See the section "Certain Features of the Notes" beginning on Page PS-25 in the product prospectus supplement. U.S. tax treatment We intend to treat the notes as subject to the special rules applicable to contingent payment debt obligations for U.S. federal income tax purposes. In accordance with these rules, you will be required to accrue interest income in accordance with the comparable yield and projected payment schedule for your notes. You should call RBC Capital Markets toll free at (866) 609-6009 to obtain this information. For a detailed discussion of the tax consequences of owning and disposing of your notes, please see the discussion under "Supplemental Discussion of Federal Income Taxes" in the accompanying product supplement, "Certain Income Tax Consequences" in the accompanying prospectus supplement, and "Tax Consequences" in the accompanying prospectus. You should consult your tax advisor about your own tax situation. Minimum $1,000 (except for certain non-U.S. investors for Investment: whom the minimum investment will be higher) Denomination: $1,000 (except for certain non-U.S. investors for whom the denomination will be higher) Final Valuation Date: April 26, 2013, subject to extension for market and other disruptions. Determination of The Reference Price for each Reference Asset will Final Reference be determined by reference to the official Price: settlement prices of certain futures and forward contracts traded on the London Metal Exchange (the "LME") for copper and Nickel, the New York Mercantile Exchange (the "NYMEX') for WTI Light Sweet Crude Oil and Natural Gas ("NG1"), and the London Platinum and Palladium Market ("LPPM") for platinum as defined in the reference asset supplement to the product prospectus supplement in the section "Commodities" on page R-21. In certain circumstances, the Final Reference Price for the Reference Assets will be based on an alternate calculation for each Commodity described under "Unavailability of the Reference Price on a Valuation Date -- Reference Asset Consisting of Individual Commodities" in the product prospectus supplement. Clearance and DTC global (including through its indirect Settlement: participants Euroclear and Clearstream, Luxembourg as described under "Description of Debt Securities -- Ownership and Book-Entry Issuance" in the accompanying prospectus). Currency: U.S. dollars. Listing: The notes will not be listed on any securities exchange or quotation system. CUSIP: 78008E7D3 Calculation agent: The Bank of New York. Terms Incorporated All of the terms appearing above the item : In the Master Note captioned "Listing" on the cover page of this pricing supplement and the terms appearing under the caption "Additional Terms of the Principal Protected Notes" in the product prospectus supplement with respect to principal protected notes dated January 7, 2008. Your investment in the notes involves certain risks. See "Additional Risk Factors Specific to Your Notes" beginning on page PS-1 of the product supplement to read about investment risks relating to the principal protected notes. Neither the Securities and Exchange Commission nor any state securities commission has approved or disapproved of these notes or passed upon the accuracy of this pricing supplement or the accompanying prospectus, prospectus supplement and product prospectus supplement. Any representation to the contrary is a criminal offense. P-2
Per note Total -------- ----- Price to public....................................................................... 100% $ Underwriting discounts and commission................................................. % $ Proceeds to Royal Bank................................................................ % $
If the notes priced today, RBC Capital Markets Corporation, which we refer to as RBCCM, acting as agent for Royal Bank of Canada, would receive a commission of approximately $37.50 per $1,000 principal amount note and would use a portion of that commission to allow selling concessions to other dealers of approximately $37.50 per $1,000 principal amount note. The other dealers may forgo, in their sole discretion, some or all of their selling concessions. If the notes priced today, the price of the notes would also include a profit of $31.70 earned by Royal Bank of Canada in hedging its exposure under the notes. In no event will the total of the commission received by RBCCM, which includes concessions to be allowed to other dealers, and the hedging profits of Royal Bank Canada exceed $87.50 per $1,000 principal amount note. The price to purchasers who maintain accounts with participating dealers in which only asset-based fees are charged is ____% and the concession paid to such dealers is __%. The price at which you purchase the notes includes hedging costs and profits that Royal Bank or its affiliates expect to incur or realize. These costs and profits will reduce the secondary market price, if any secondary market develops, for the notes. As a result, you may experience an immediate and substantial decline in the value of your notes on the issue date. We may use this pricing supplement in the initial sale of a principal protected note. In addition, RBC Capital Markets Corporation or another of our affiliates may use this pricing supplement in a market-making transaction in a principal protected note after its initial sale. Unless we or our agent informs the purchaser otherwise in the confirmation of sale, this pricing supplement is being used in a market-making transaction. The notes will not constitute deposits insured under the Canada Deposit Insurance Corporation or by the U.S. Federal Deposit Insurance Corporation or any other Canadian or U.S. governmental agency or instrumentality. ADDITIONAL TERMS OF YOUR NOTES You should read this pricing supplement together with the accompanying product prospectus supplement and reference asset supplement, dated January 7, 2008, the accompanying prospectus, dated January 5, 2007 and the accompanying prospectus supplement, dated February 28, 2007. The information in the accompanying product supplement, prospectus and prospectus supplement is supplemented by, and to the extent inconsistent therewith replaced and superseded by, the information in this pricing supplement. You should carefully consider, among other things, the matters set forth under "Additional Risk Factors" in the product prospectus supplement and the matters set forth under "Risk Factors" in the prospectus supplement dated February 28, 2007 as the principal protected notes involve risks not associated with conventional debt securities. We urge you to consult your investment, legal, tax, accounting and other advisors before you invest in the principal protected notes. You may access these documents on the SEC website at www.sec.gov as follows (or if such address has changed, by reviewing our filings for the relevant date on the SEC website): o Prospectus dated January 5, 2007: http://www.sec.gov/Archives/edgar/data/1000275/000090956707000025/ o34295e424b3.htm o Prospectus Supplement dated February 28, 2007: http://www.sec.gov/Archives/edgar/data/1000275/000090956707000285/ o35030e424b3.htm o Product Prospectus Supplement dated January 7, 2008: http://www.sec.gov/Archives/edgar/data/1000275/000121465908000021/ f1383424b3.txt Our SEC file number is 333-139359. As used in this pricing supplement, the "Company," "we," "us," or "our" refers to Royal Bank of Canada. P-3 Hypothetical Returns The examples set out below are included for illustration purposes only. All examples assume that a holder has purchased Notes with an aggregate principal amount of $10,000, a Participation Rate of 100% and that no extraordinary event has occurred. Example 1-- Calculation of the payment at maturity where the Reference Asset Performance is positive. Reference Asset 55% Performance: Payment at Maturity $10,000 + ($10,000 x 55%) = $10,000 + $5,500 = $15,500 On a $10,000 investment, a 55% Reference Asset Performance results in a payment at maturity of $15,500, a 55% return on the Notes. Example 2-- Calculation of the payment at maturity where the Reference Asset Performance is negative. Reference Asset -35% Performance: Payment at Maturity $10,000 + ($10,000 x -35%) = $10,000 + $0 = $10,000; the Payment at Maturity cannot be less than zero; therefore, the payment at maturity will be limited to the Principal Amount. On a $10,000 investment, a -35% Reference Asset Performance results in a payment at maturity of $10,000, a 0% return on the Notes. Historical Information The graphs below set forth the historical performance of each Reference Asset. In addition, below each graph is a table setting forth the intra-day high, intra-day low, and either period-end closing prices or mid line prices of the Reference Asset. The information provided in the tables is for the second, third and fourth calendar quarters of 2004, the four calendar quarters of 2005, 2006, 2007, the first quarter of 2008, as well as for the period from April 1, 2008 through April 7, 2008. We obtained the information regarding the historical performance of the Reference Assets in the charts below from Bloomberg Financial Markets and Factset Research Systems Inc. We make no representation or warranty as to the accuracy or completeness of the information obtained from Bloomberg Financial Markets and Factset Research Systems Inc. The historical performance of the Reference Assets should not be taken as an indication of future performance, and no assurance can be given as to the market prices of the Reference Assets on the Final Valuation Date. We cannot give you assurance that the performance of the Reference Assets will result in any return in addition to your initial investment. P-4 NYMEX WTI Light Sweet Crude Oil (Apr-98 - Apr-08) [CHART OMITTTED]
High Intra-Day Low Intra-Day Mid-Line Price Period-Start Period-End Price of the Price of the of the Reference Date Date Reference Asset Reference Asset Asset ---- ---- --------------- --------------- ----- 4/1/2004 6/30/2004 42.45 33.3 37.05 7/1/2004 9/30/2004 50.47 36.69 49.64 10/1/2004 12/31/2004 55.67 40.25 43.45 1/1/2005 3/31/2005 57.6 41.25 55.4 4/1/2005 6/30/2005 60.95 46.2 56.5 7/1/2005 9/30/2005 70.85 56.1 66.24 10/1/2005 12/30/2005 66.62 55.4 61.04 1/1/2006 3/31/2006 69.2 57.55 66.63 4/1/2006 6/30/2006 75.35 65.6 73.93 7/1/2006 9/29/2006 78.4 59.52 62.91 10/1/2006 12/29/2006 64.15 54.86 61.05 1/1/2007 3/31/2007 68.09 49.9 65.87 4/1/2007 6/30/2007 71.06 60.68 70.68 7/1/2007 9/30/2007 83.9 68.63 81.66 10/1/2007 12/31/2007 99.29 78.35 95.98 1/1/2008 3/31/2008 111.8 86.11 101.58 4/1/2008 4/7/2008 109.48 99.55 109.09
PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. P-5 NYMEX Henry Hub Natural Gas (Apr-98 - Apr-08) [GRAPHIC OMITTED]
High Intra-Day Low Intra-Day Mid Line Price of Period-Start Period-End Price of the Price of the the Reference Date Date Reference Asset Reference Asset Asset ---- ---- --------------- --------------- ----- 4/1/2004 6/30/2004 6.76 5.46 6.155 7/1/2004 9/30/2004 7.23 4.52 6.795 10/1/2004 12/31/2004 9.2 6.1 6.149 1/1/2005 3/31/2005 7.74 5.71 7.653 4/1/2005 6/30/2005 7.915 6.03 6.981 7/1/2005 9/30/2005 14.58 6.949 13.921 10/1/2005 12/30/2005 15.78 10.72 11.225 1/1/2006 3/31/2006 11 6.45 7.21 4/1/2006 6/30/2006 8.28 5.75 6.104 7/1/2006 9/29/2006 8.619 4.05 5.62 10/1/2006 12/29/2006 9.05 5.46 6.299 1/1/2007 3/31/2007 8.035 6.03 7.73 4/1/2007 6/30/2007 8.23 6.551 6.773 7/1/2007 9/30/2007 7.192 5.192 6.87 10/1/2007 12/31/2007 8.712 6.643 7.483 1/1/2008 3/31/2008 10.294 7.5 10.101 4/1/2008 4/7/2008 10.035 9.29 9.791
PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. P-6 LME Copper (Apr-98 - Apr-08) [CHART OMITTED]
Period-End High Intra-Day Low Intra-Day Closing Price of Period-Start Period-End Price of the Price of the the Reference Date Date Reference Asset Reference Asset Asset ---- ---- --------------- --------------- ----- 4/1/2004 6/30/2004 3170 2554 2664.5 7/1/2004 9/30/2004 3140 2700 3140 10/1/2004 12/31/2004 3287 2835 3279.5 1/1/2005 3/31/2005 3424.5 3072 3408 4/1/2005 6/30/2005 3670 3113 3597 7/1/2005 9/30/2005 3978 3444 3949 10/1/2005 12/30/2005 4650 3905 4584.5 1/1/2006 3/31/2006 5527.5 4537 5527.5 4/1/2006 6/30/2006 8788 5561 7501 7/1/2006 9/29/2006 8233 7230 7601 10/1/2006 12/29/2006 7740 6290 6290 1/1/2007 3/31/2007 6940 5225.5 6940 4/1/2007 6/30/2007 8225 6916 7650 7/1/2007 9/30/2007 8210 6960 8165 10/1/2007 12/31/2007 8301 6272.50 6676.50 1/1/2008 3/31/2008 8881 6666 8520 4/1/2008 4/7/2008 8740 8325.50 8740
PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. P-7 LME Nickel (Apr-98 - Apr-08) [CHART OMITTED]
Period-End High Intra-Day Low Intra-Day Closing Price of Period-Start Period-End Price of the Price of the the Reference Date Date Reference Asset Reference Asset Asset ---- ---- --------------- --------------- ----- 4/1/2004 6/30/2004 15330 10530 14990 7/1/2004 9/30/2004 15980 12050 15100 10/1/2004 12/31/2004 16595 12685 15205 1/1/2005 3/31/2005 16565 14035 16250 4/1/2005 6/30/2005 17750 14520 14700 7/1/2005 9/30/2005 15600 13410 13600 10/1/2005 12/30/2005 14120 11500 13380 1/1/2006 3/31/2006 15340 13505 15340 4/1/2006 6/30/2006 23100 15600 22275 7/1/2006 9/29/2006 34750 22690 31500 10/1/2006 12/29/2006 35455 29995 34205 1/1/2007 3/31/2007 50345 32900 45500 4/1/2007 6/30/2007 54200 35850 35850 7/1/2007 9/30/2007 36950 25055 31050 10/1/2007 2/31/2007 33655 25510 25805 1/1/2008 3/31/2008 33300 26410 29805 4/1/2008 4/7/2008 28900 28200 28290
PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. P-8 London Platinum PM Fixing (Apr-98 - Apr-08) [CHART OMITTED]
High Intra-Day Low Intra-Day Mid Line Price of Period-Start Period-End Price of the Price of the the Reference Date Date Reference Asset Reference Asset Asset ---- ---- --------------- --------------- ----- 4/1/2004 6/30/2004 n/a n/a 793 7/1/2004 9/30/2004 n/a n/a 854 10/1/2004 12/31/2004 n/a n/a 859 1/1/2005 3/31/2005 n/a n/a 864 4/1/2005 6/30/2005 n/a n/a 884 7/1/2005 9/30/2005 n/a n/a 929 10/1/2005 12/30/2005 n/a n/a 965 1/1/2006 3/31/2006 n/a n/a 1076 4/1/2006 6/30/2006 n/a n/a 1226 7/1/2006 9/29/2006 n/a n/a 1140 10/1/2006 12/29/2006 n/a n/a 1118 1/1/2007 3/31/2007 n/a n/a 1244 4/1/2007 6/30/2007 n/a n/a 1273 7/1/2007 9/30/2007 n/a n/a 1377 10/1/2007 12/31/2007 n/a n/a 1530 1/1/2008 3/31/2008 n/a n/a 2040 4/1/2008 4/7/2008 n/a n/a 2034
PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. P-9 Specific Investment Considerations The notes are intended to be held to maturity. Your principal is only protected (to the extent specified on the front cover of this pricing supplement) if you hold the notes until maturity. If you sell your notes in the secondary market prior to maturity, you will not receive principal protection on the portion of your notes sold and may incur a substantial loss. There may be little or no secondary market for the notes. In addition, the price at which you purchase the notes includes hedging costs and profits that Royal Bank or its affiliates expect to incur or realize. These costs and profits will reduce the secondary market price, if any secondary market develops, for the notes. As a result, you may experience an immediate and substantial decline in the value of your notes on the issue date. You may not realize a gain on the note. If the reference asset performance is zero or negative on the final valuation date, the payment at maturity with respect to each note will be limited to the principal amount. This will be true, even where the reference asset performance was positive as of some date or dates prior to the final valuation date, because the payment at maturity will be calculated solely on the basis of the reference asset performance (or otherwise determined by the calculation agent, in the case of a market disruption event) as of the final valuation date. The notes are intended to be held to maturity. The notes are unsecured. The notes are solely the unsecured obligations of Royal Bank. An investment in the notes does not constitute a deposit and neither the notes nor your investment in the notes are insured by the Canada Deposit Insurance Corporation, the Federal Deposit Insurance Corporation or any other private or governmental agency. The business and affairs of Royal Bank may affect the market value of your Notes. Potential conflicts of interest. We and our affiliates expect to engage in trading activities related to the Reference Assets that may present a conflict between the holders' interest in the notes and the interests we and our affiliates will have in their proprietary accounts, in facilitating transactions, including options and other derivatives transactions, for their customers and in accounts under their management. These trading activities could influence the price of the Reference Assets and, therefore, the market value of the notes. Insurance companies, employee benefit plans and non-U.S. holders. Any insurance company or fiduciary of a pension plan or other employee benefit plan or any non-U.S. holder of the notes should consult with its own advisors to determine whether an investment in the notes is suitable for you. Non-U.S. holders are subject to particular risks that are not described in the product supplement. Supplemental Plan of Distribution We expect that delivery of the Notes will be made against payment for the Notes on or about April 30, 2008, which is the second business day following the Initial Valuation Date (this settlement cycle being referred to as "T+2"). See "Supplemental Plan of Distribution" in the prospectus supplement dated February 28, 2007. P-10 No dealer, salesman or other person has been authorized to give any information or to make any representation not contained in this pricing supplement, the accompanying prospectus, prospectus supplement or product prospectus supplement and, if given or made, such information or representation must not be relied upon as having been authorized by Royal Bank of Canada or the Underwriter. This pricing supplement, the accompanying prospectus, prospectus supplement and product prospectus supplement do not constitute an offer to sell or a solicitation of an offer to buy any securities other than the securities described in this pricing supplement nor do they constitute an offer to sell or a solicitation of an offer to buy the securities in any jurisdiction to any person to whom it is unlawful to make such offer or solicitation in such jurisdiction. The delivery of this pricing supplement, the accompanying prospectus, prospectus supplement and product prospectus supplement at any time does not imply that the information they contain is correct as of any time subsequent to their respective dates. $ [RBC LOGO] Royal Bank of Canada Senior Global Medium-Term Notes, Series C Principal Protected Notes April , 2008 -----END PRIVACY-ENHANCED MESSAGE-----