By Wendy Van Sickle
Columbus, Ohio, June 14 – Royal Bank of Canada priced $9.6 million of 10% STEP Income Securities due June 23, 2023 linked to the common stock of Home Depot, 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, 110% of the initial share price, the payout at maturity will be par of $10 plus 4.5%.
If the stock finishes flat or gains up to the step level, the payout will be par.
Otherwise, investors will lose 1% for every 1% decline from initial share price.
BofA Securities Inc. is the underwriter.
Issuer: | Royal Bank of Canada
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Issue: | STEP Income Securities
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Underlying stock: | Home Depot, Inc.
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Amount: | $9,603,100
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Maturity: | June 23, 2023
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Coupon: | 10% annually, payable quarterly
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Price: | Par of $10
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Payout at maturity: | If the shares finish at or above step level, par plus 4.5%; if the shares finish flat or gain up to step level, par; otherwise, investors will be fully exposed to any decline
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Initial share price: | $302.83
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Step level: | $333.11; 110% of the initial value
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Pricing date: | June 9
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Settlement date: | June 16
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Underwriter: | BofA Securities Inc.
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Fees: | 1.5%
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Cusip: | 78015B492
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