By William Gullotti
Buffalo, N.Y., June 21 – Royal Bank of Canada priced $13.27 million of 10.5% STEP Income Securities due June 28, 2024 linked to the class B common stock of United Parcel Service, 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, 110.5% of the initial share price, the payout at maturity will be par of $10 plus 4.4%.
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
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Issue: | STEP Income Securities
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Underlying stock: | United Parcel Service, Inc.
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Amount: | $13,265,300
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Maturity: | June 28, 2024
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Coupon: | 10.5% 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%; if the shares finish flat or gain up to step level, par; otherwise, full exposure to loss
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Initial share price: | $178.05
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Step level: | $196.75; 110.5% of initial level
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Pricing date: | June 15
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Settlement date: | June 23
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Underwriter: | BofA Securities Inc.
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Fees: | 1.5%
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Cusip: | 78016B301
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