By Toni Weeks
San Diego, Sept. 17 - Bank of America Corp. priced $28.14 million of 9.5% STEP Income Securities due Sept. 27, 2013 linked to the performance of Caterpillar Inc. shares, according to a 424B2 filing with the Securities and Exchange Commission.
Interest will be payable quarterly.
If the price of Caterpillar shares finishes at or above the step level - 109.5% of the initial price - the payout at maturity will be par of $10 plus 4.98%.
If the stock finishes at or above the initial price but below the step level, the payout will be par.
Investors will be exposed to any losses.
Bank of America Merrill Lynch is the agent.
| Issuer: | Royal Bank of Canada
|
| Issue: | STEP Income Securities
|
| Underlying stock: | Caterpillar Inc. (NYSE: CAT)
|
| Amount: | $28,138,570
|
| Maturity: | Sept. 27, 2013
|
| Coupon: | 9.5%, payable quarterly
|
| Price: | Par
|
| Payout at maturity: | If Caterpillar shares finish at or above $98.45, par plus $0.498 per $10 note; if shares finish at or above initial price but below STEP level, par; full exposure to losses
|
| Initial price: | $89.91
|
| STEP level: | $98.45, 109.5% of initial value
|
| Pricing date: | Sept. 13
|
| Settlement date: | Sept. 20
|
| Agent: | Bank of America Merrill Lynch
|
| Fees: | 1.75%
|
| Cusip: | 78008B269
|
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