By Wendy Van Sickle
Columbus, Ohio, May 3 – Royal Bank of Canada priced $10.85 million of 16.5% STEP Income Securities due May 10, 2024 linked to the common stock of Freeport-McMoRan 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, 116.5% of the initial share price, the payout at maturity will be par of $10 plus 4.4%.
Investors will be fully exposed to any decline.
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: | Freeport-McMoRan Inc.
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Amount: | $10,853,230
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Maturity: | May 10, 2024
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Coupon: | 16.5% 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 4.4%; otherwise, investors will lose 1% for every 1% decline from initial level
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Initial share price: | $37.08
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Step level: | $43.20; 116.5% of the initial value
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Pricing date: | April 27
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Settlement date: | May 4
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Underwriter: | BofA Securities Inc.
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Fees: | 1.5%
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Cusip: | 78015B862
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