Royal Bank of Canada sold $45.6 million of one-year notes tied to the share price of Delta Air Lines Inc. (DAL:US), the largest U.S. offering linked to the company since at least January 2010.
The securities, issued Sept. 27, pay 14 percent annual interest and an additional 1.9 percent if the stock rises at least 14 percent, with investors at risk of losing as much as 95 percent of their investment, according to a prospectus filed with the U.S. Securities and Exchange Commission. Bank of America Corp (BAC:US). distributed the securities for a 1.75 percent commission.
Deutsche Bank AG sold the second-largest note tied to the world’s second-biggest carrier this year on April 20. The $4.24 million of one-year, auto-callable securities yield 13.5 percent a year as long as the stock doesn’t decline by more than 55 percent, according to a prospectus filed with the SEC.
Shares of Delta have dropped (DAL:US) about 22 percent to $9.45 from their more than one-year peak on May 31. The airline has been trying to buy cheaper domestic Bakken crude oil from North Dakota to save money on making jet fuel.
Bloomberg began collecting comprehensive data on U.S. SEC- registered securities in 2010.
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