By William Gullotti
Buffalo, N.Y., Nov. 1 – Royal Bank of Canada priced $12.38 million of 12% STEP Income Securities due Nov. 10, 2023 linked to the common stock of Walt Disney Co., 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, 112% of the initial share price, the payout at maturity will be par of $10 plus 6.6%.
If the final share price is greater than or equal to the initial level, the payout will be par.
Investors will be fully exposed to any decline in the stock.
BofA Securities Inc. is the underwriter.
| Issuer: | Royal Bank of Canada
|
| Issue: | STEP Income Securities
|
| Underlying stock: | Walt Disney Co.
|
| Amount: | $12,376,510
|
| Maturity: | Nov. 10, 2023
|
| Coupon: | 12% annually, payable quarterly
|
| Price: | Par of $10
|
| Payout at maturity: | If the shares finish at or above step level, par plus 6.6%; if final share price is greater than or equal to initial level, par; otherwise, investors will lose 1% for every 1% decline from initial level
|
| Initial share price: | $105.50
|
| Step level: | $118.16; 112% of the initial value
|
| Pricing date: | Oct. 27
|
| Settlement date: | Nov. 3
|
| Underwriter: | BofA Securities Inc.
|
| Fees: | 1.5%
|
| Cusip: | 78074B300
|
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