By Jennifer Chiou
New York, Feb. 2 – Royal Bank of Canada priced $37,146,710 of 10% STEP Income Securities due Feb. 12, 2016 linked to the common stock of Alcoa Inc., according to a 424B2 filing with the Securities and Exchange Commission.
Interest is payable quarterly.
If the final price of Alcoa 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 the 1.26% step payment.
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: | Alcoa Inc. (Symbol: AA)
|
| Amount: | $37,146,710
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| Maturity: | Feb. 12, 2016
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| Coupon: | 10%, payable quarterly
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| Price: | Par of $10
|
| Payout at maturity: | If final price of Alcoa stock is greater than or equal to step level, par plus 1.26%; if final share price is greater than or equal to initial share price but less than step level, par; 1% loss for every 1% that final share price is less than initial share price
|
| Initial share price: | $15.80, equal to volume-weighted average price on pricing date
|
| Step level: | $17.38, 110% of initial share price
|
| Pricing date: | Jan. 29
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| Settlement date: | Feb. 5
|
| Agent: | BofA Merrill Lynch
|
| Fees: | 1.75%
|
| Cusip: | 78011X498
|
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