By Marisa Wong
Madison, Wis., Dec. 27 - Royal Bank of Canada priced $17.84 million of 6.5% STEP Income Securities due Jan. 10, 2014 linked to the common stock of Deere & Co., according to a 424B2 filing with the Securities and Exchange Commission.
Interest will be payable quarterly.
If the price of Deere shares finishes at or above the step level - 106.5% of the initial price - the payout at maturity will be par of $10 plus a step payment of 6.17%, or $0.617 per $10 note.
If the stock finishes at or above the initial share price but below the step level, the payout will be par.
Investors will be exposed to losses if the final share price is less than the initial price.
Bank of America Merrill Lynch is the agent.
| Issuer: | Royal Bank of Canada
|
| Issue: | STEP Income Securities
|
| Underlying stock: | Deere Chase & Co. (NYSE: DE)
|
| Amount: | $17,844,070
|
| Maturity: | Jan. 10, 2014
|
| Coupon: | 6.5%, payable quarterly
|
| Price: | Par
|
| Payout at maturity: | If Deere shares finish at or above step level, par plus $0.617 per $10 note; if shares finish at or above initial price but below step level, par; full exposure to losses
|
| Initial price: | $86.33
|
| Step level: | $91.94, 106.5% of initial value
|
| Pricing date: | Dec. 20
|
| Settlement date: | Dec. 28
|
| Agent: | Bank of America Merrill Lynch
|
| Fees: | 1.75%
|
| Cusip: | 78011D872
|
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