By William Gullotti
Buffalo, N.Y., Feb. 14 – Royal Bank of Canada priced $6.96 million of 13% STEP Income Securities due Feb. 21, 2025 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, 113% of the initial share price, the payout at maturity will be par of $10 plus 6.3%.
If the stock finishes flat or gains up to the step level, the payout will be par.
Otherwise, investors will lose 1% for every 1% decline from initial level.
BofA Securities Inc. is the underwriter.
| Issuer: | Royal Bank of Canada
|
| Issue: | STEP Income Securities
|
| Underlying stock: | Freeport-McMoRan Inc.
|
| Amount: | $6,964,000
|
| Maturity: | Feb. 21, 2025
|
| Coupon: | 13% annually, payable quarterly
|
| Price: | Par of $10
|
| Payout at maturity: | If the shares finish at or above step level, par plus 6.3%; if the shares finish flat or gain up to step level, par; otherwise, full exposure to loss
|
| Initial share price: | $38.19
|
| Step level: | $43.15; 113% of initial level
|
| Pricing date: | Feb. 8
|
| Settlement date: | Feb. 15
|
| Underwriter: | BofA Securities Inc.
|
| Fees: | 1.5%
|
| Cusip: | 78074B557
|
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