Published on 4/27/2015 in the Prospect News Structured Products Daily.
New Issue: RBC prices $15.77 million 9.5% STEP Income Securities linked to Splunk
By Angela McDaniels
Tacoma, Wash., April 27 – Royal Bank of Canada priced $15.77 million of 9.5% STEP Income Securities due May 6, 2016 linked to the common stock of Splunk Inc., according to a 424B2 filing with the Securities and Exchange Commission.
If the final price of Splunk stock is greater than or equal to the step level, the payout at maturity will be par of $10 plus 4.41%. The step level is 109.5% of the initial share price.
If the final share price is greater than or equal to the threshold price but less than the step level, investors will receive par. The threshold price is 95% of the initial share price.
If the final share price is less than the threshold price, investors will lose 1% for every 1% that the index declines beyond 5%.
BofA Merrill Lynch is the agent.
Issuer: | Royal Bank of Canada
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Issue: | STEP Income Securities
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Underlying stock: | Splunk Inc. (Nasdaq: SPLK)
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Amount: | $15,765,170
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Maturity: | May 6, 2016
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Coupon: | 9.5%, payable quarterly
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Price: | Par of $10.00
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Payout at maturity: | If final price of Splunk stock is greater than or equal to step level, par plus 4.41%; if final share price is greater than or equal to threshold price but less than step level, par; if final share price is less than threshold price, 1% loss for every 1% that index declines beyond 5%
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| Initial share price: | $67.49, volume-weighted average price on pricing date
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Step level: | $73.90, 109.5% of initial share price
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Threshold value: | $64.12, 95% of initial share price
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Pricing date: | April 23
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Settlement date: | April 30
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Agent: | BofA Merrill Lynch
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Fees: | 1.75%
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Cusip: | 78013D110
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