RBC plans to price 8% one-year STEP Income Securities linked to Sony

By Susanna Moon

Chicago, April 10 - Royal Bank of Canada plans to price 8% STEP Income Securities due May 2015 linked to the American Depositary Receipts of Sony Corp., according to an FWP filing with the Securities and Exchange Commission.

Interest will be payable quarterly.

If Sony shares finish at or above the step level, the payout at maturity will be par of $10 plus the step payment, which is expected to be 1% to 5% and will be set at pricing. The step level will be 108% of the initial share price.

If the shares gain by up to the step level, investors will receive par.

Investors will be exposed to any losses.

BofA Merrill Lynch is the agent.

The notes will price in April and settle in May.

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