RBC plans to price 8% STEP Income Securities due 2015 linked to Yahoo

By Susanna Moon

Chicago, July 17 – Royal Bank of Canada plans to price 8% STEP Income Securities due August 2015 linked to Yahoo! Inc. shares, according to an FWP filing with the Securities and Exchange Commission.

Interest will be payable quarterly.

If Yahoo shares finish at or above the step level, the payout at maturity will be par of $10 plus the step payment, which is expected to be 1% to 5% and will be set at pricing. The step level will be 108% of the initial share price.

If the shares gain by up to the step level, investors will receive par.

Investors will be exposed to any losses.

BofA Merrill Lynch is the agent.

The notes will price and settle in July.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.