By Marisa Wong
Morgantown, W.Va., Feb. 6 – Royal Bank of Canada priced $7.74 million of 0% market-linked step-up notes due Jan. 28, 2019 linked to a basket three telecommunications sector stocks, according to a 424B2 filing with the Securities and Exchange Commission.
The basket is comprised of CenturyLink Inc. with a 33.33% weight, AT&T Inc. with a 33.33% weight and Verizon Communications Inc. with a 33.34% weight.
If the basket finishes above the step-up value, 132.25% of the initial level, the payout at maturity will be par plus the basket gain.
If the basket finishes at or below the step-up level but at or above the initial level, the payout will be par plus the step-up payment of 32.25%.
Investors will be exposed to any basket decline.
BofA Merrill Lynch is the agent.
| Issuer: | Royal Bank of Canada
|
| Issue: | Market-linked step-up notes
|
| Underlying basket: | CenturyLink Inc. (NYSE: CTL) with 33.33% weight, AT&T Inc. (NYSE: T) with 33.33% weight, Verizon Communications Inc. (NYSE: VZ) with 33.34% weight
|
| Amount: | $7,735,000
|
| Maturity: | Jan. 28, 2019
|
| Coupon: | 0%
|
| Price: | Par
|
| Payout at maturity: | If basket finishes above 132.25% of initial level, par plus basket gain; if basket finishes at or below step-up level but at or above initial level, par plus 32.25%; full exposure to any basket decline
|
| Initial prices: | $25.81 for CenturyLink, $41.82 for AT&T, $49.37 for Verizon
|
| Pricing date: | Jan. 30
|
| Settlement date: | Feb. 6
|
| Agent: | BofA Merrill Lynch
|
| Fees: | 2%
|
| Cusip: | 78014F601
|
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