RBC plans 10% STEP Income Securities due 2016 tied to United Rentals

By Jennifer Chiou

New York, Feb. 2 – Royal Bank of Canada plans to price 10% STEP Income Securities due February 2016 linked to United Rentals, Inc. shares, according to an FWP with the Securities and Exchange Commission.

Interest will be payable quarterly.

If United Rentals 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 110% of the initial share price.

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

Investors will be exposed to any losses.

The notes will price and settle in February.

BofA Merrill Lynch is the agent.

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