By Marisa Wong
Madison, Wis., June 2 - Royal Bank of Canada priced $61.43 million of 10% STEP Income Securities due June 12, 2015 linked to the common stock of Under Armour, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
Interest will be payable quarterly.
If the final price of Under Armour shares is greater than or equal to the step level, the payout at maturity will be par of $10 plus the step payment of 2.72%. The step level will be 110% of the initial share price.
If the final share price is greater than or equal to the initial share price but less than the step level, investors will receive par.
If the final share price is less than the initial share price, investors will have one-to-one exposure to the decline.
BofA Merrill Lynch is the agent.
Issuer: | Royal Bank of Canada
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Issue: | STEP Income Securities
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Underlying stock: | Under Armour, Inc. (NYSE: UA)
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Amount: | $61,429,890
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Maturity: | June 12, 2015
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Coupon: | 10%, payable quarterly
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Price: | Par
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Payout at maturity: | If final share price is greater than or equal to step level, par of $10 plus step payment of 2.72%; if final share price is greater than or equal to initial share price but less than step level, par; if final share price is less than initial share price, investors will have one-to-one exposure to decline
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Initial price: | $50.48
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Step level: | $55.53, 110% of initial price
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Pricing date: | May 29
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Settlement date: | June 5
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Agent: | BofA Merrill Lynch
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Fees: | 1.75%
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Cusip: | 78011X605
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