By Taylor Fox
New York, Feb. 18 – Royal Bank of Canada priced $16.55 million of 10.5% STEP Income Securities due Feb. 11, 2022 linked to the common stock of FedEx Corp., 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, 110.5% of the initial share price, the payout at maturity will be par of $10 plus 6.23%.
If the final share price is greater than or equal to the initial share price but less than the step level, the payout will be par.
If the final share price is less than the initial share price, investors will be exposed to the decline.
BofA Securities Inc. is the underwriter.
| Issuer: | Royal Bank of Canada
|
| Issue: | STEP Income Securities
|
| Underlying stock: | FedEx Corp.
|
| Amount: | $16,550,110
|
| Maturity: | Feb. 11, 2022
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| Coupon: | 10.5%, payable quarterly
|
| Price: | Par of $10
|
| Payout at maturity: | If the shares finish at or above step level, par plus 6.23%; if final share price is greater than or equal to initial share price but less than step level, par; if final share price is less than initial share price, exposure to decline
|
| Initial share price: | $243.99
|
| Step level: | $269.61, 110.5% of the initial value
|
| Pricing date: | Jan. 28
|
| Settlement date: | Feb. 4
|
| Underwriter: | BofA Securities Inc.
|
| Fees: | 1.5%
|
| Cusip: | 78014T650
|
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