By William Gullotti
Buffalo, N.Y., July 19 – Royal Bank of Canada priced $15.07 million of 12.9% STEP Income Securities due July 28, 2023 linked to the common stock of Amazon.com, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
Interest is payable quarterly.
If the shares finish at or above the step level, 112.9% of the initial share price, the payout at maturity will be par of $10 plus 6.5%.
If the shares finish flat or gain up to the step level, the payout will be par.
Investors will be fully exposed to any decline in the stock’s share price.
BofA Securities Inc. is the underwriter.
| Issuer: | Royal Bank of Canada
|
| Issue: | STEP Income Securities
|
| Underlying stock: | Amazon.com, Inc.
|
| Amount: | $15,072,100
|
| Maturity: | July 28, 2023
|
| Coupon: | 12.9% annually, payable quarterly
|
| Price: | Par of $10
|
| Payout at maturity: | If the shares finish at or above step level, par plus 6.5%; if the shares finish flat or gain up to step level, par; otherwise, investors will lose 1% for every 1% decline from initial share price
|
| Initial share price: | $109.37
|
| Step level: | $123.48; 112.9% of the initial value
|
| Pricing date: | July 14
|
| Settlement date: | July 21
|
| Underwriter: | BofA Securities Inc.
|
| Fees: | 1.5%
|
| Cusip: | 78074B102
|
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