By William Gullotti
Buffalo, N.Y., June 29 – Royal Bank of Canada priced $17.03 million of 13% STEP Income Securities due July 8, 2022 linked to the common stock of Tesla, 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, 113% of the initial share price, the payout at maturity will be par of $10 plus 3.9%.
If the final share price is greater than or equal to the 90% threshold value, the payout will be par.
Otherwise, investors will lose 1% for every 1% decline below the threshold.
BofA Securities Inc. is the underwriter.
| Issuer: | Royal Bank of Canada
|
| Issue: | STEP Income Securities
|
| Underlying stock: | Tesla, Inc.
|
| Amount: | $17,026,190
|
| Maturity: | July 8, 2022
|
| Coupon: | 13% annually, payable quarterly
|
| Price: | Par of $10
|
| Payout at maturity: | If the shares finish at or above step level, par plus 3.9%; if final share price is greater than or equal to the 90% threshold value, par; otherwise, investors will lose 1% for every 1% decline beyond the threshold
|
| Initial share price: | $684.84
|
| Step level: | $773.87; 113% of the initial value
|
| Threshold value: | $616.36; 90% of the initial value
|
| Pricing date: | June 24
|
| Settlement date: | July 1
|
| Underwriter: | BofA Securities Inc.
|
| Fees: | 1.5%
|
| Cusip: | 78014T536
|
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