By Angela McDaniels
Tacoma, Wash., June 21 – Royal Bank of Canada priced $9.32 million of 10% STEP Income Securities due June 30, 2017 linked to the common stock of Hewlett-Packard Co., according to a 424B2 filing with the Securities and Exchange Commission.
Interest is payable quarterly.
If the final price of Hewlett-Packard stock is greater than or equal to the step level, 110% of the initial share price, the payout at maturity will be par of $10 plus 7.86%.
If the final share price is greater than or equal to the initial share price but less than the step level, investors will receive par.
If the final share price is less than the initial share price, investors will be fully exposed to the decline.
BofA Merrill Lynch is the agent.
| Issuer: | Royal Bank of Canada
|
| Issue: | STEP Income Securities
|
| Underlying stock: | Hewlett-Packard Co. (Symbol: HP)
|
| Amount: | $9,318,600
|
| Maturity: | June 30, 2017
|
| Coupon: | 10%, payable quarterly
|
| Price: | Par of $10.00
|
| Payout at maturity: | If final share price is greater than or equal to step level, par plus 7.86%; 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, full exposure to decline
|
| Initial share price: | $13.09 (volume-weighted average price on pricing date)
|
| Step level: | $14.40, 110% of initial share price
|
| Pricing date: | June 17
|
| Settlement date: | June 24
|
| Agent: | BofA Merrill Lynch
|
| Fees: | 1.75%
|
| Cusip: | 78011X456
|
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