RBC to price 8% STEP Income Securities linked to Celgene stock

By Angela McDaniels

Tacoma, Wash., July 1 - Royal Bank of Canada plans to price 8% STEP Income Securities due July 2014 linked to the common stock of Celgene Corp., according to an FWP filing with the Securities and Exchange Commission.

Interest will be payable quarterly.

If the final share price is greater than or equal to the step level, 108% of the initial share price, the payout at maturity will be par of $10.00 plus a step payment of $0.10 to $0.50. The exact step payment will be set at pricing.

If the final share price is greater than or equal to the threshold value, 95% of initial share price, but less than the step level, the payout will be par.

If the final share price is less than the threshold value, investors will lose 1% for every 1% that the share price declines beyond 5%.

BofA Merrill Lynch is the underwriter.

The notes are expected to price and settle in July.

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