By Toni Weeks
San Luis Obispo, Calif., May 20 - Royal Bank of Canada priced $16.58 million of 7.5% STEP Income Securities due May 23, 2014 linked to the performance of Corning Inc. shares, according to a 424B2 filing with the Securities and Exchange Commission.
Interest will be payable quarterly.
If the price of Corning shares finishes at or above the step level - 107.5% of the initial price - the payout at maturity will be par of $10 plus 2.47%.
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.
BofA Merrill Lynch is the agent.
| Issuer: | Royal Bank of Canada
|
| Issue: | STEP Income Securities
|
| Underlying stock: | Corning Inc. (Nasdaq: GLW)
|
| Amount: | $16,579,100
|
| Maturity: | May 23, 2014
|
| Coupon: | 7.5%, payable quarterly
|
| Price: | Par
|
| Payout at maturity: | If Corning shares finish at or above $16.73, par plus $0.247 per $10 note; if shares finish at or above initial price but below STEP level, par; full exposure to losses
|
| Initial price: | $15.56
|
| STEP level: | $16.73, 107.5% of initial value
|
| Pricing date: | May 16
|
| Settlement date: | May 22
|
| Agent: | BofA Merrill Lynch
|
| Fees: | 1.75%
|
| Cusip: | 78011D716
|
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