New Issue: RBC prices $52.54 million 8% STEP Income Securities linked to GM

By Angela McDaniels

Tacoma, Wash., March 16 – Royal Bank of Canada priced $52.54 million of 8% STEP Income Securities due March 28, 2016 linked to the common stock of General Motors Co., according to a 424B2 filing with the Securities and Exchange Commission.

If the final price of GM stock is greater than or equal to the step level, the payout at maturity will be par of $10 plus 3.97%. The step level is 108% of the initial share price.

If the final share price is greater than or equal to the initial share price but less than the step level, investors will receive par.

If the final share price is less than the initial share price, investors will have one-to-one exposure to the decline.

BofA Merrill Lynch is the agent.

Issuer:	Royal Bank of Canada
Issue:	STEP Income Securities
Underlying stock:	General Motors Co. (NYSE: GM)
Amount:	$52,536,490
Maturity:	March 28, 2016
Coupon:	8%, payable quarterly
Price:	Par of $10.00
Payout at maturity:	If final price of GM stock is greater than or equal to step level, par of $10 plus 3.97%; if final share price is greater than or equal to initial share price but less than step level, par; if final share price is less than initial share price, one-to-one exposure to decline
Initial share price:	$38.24, volume-weighted average price on pricing date
Step level:	$41.30, 108% of initial share price
Pricing date:	March 12
Settlement date:	March 19
Agent:	BofA Merrill Lynch
Fees:	1.75%
Cusip:	78013B403

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