Form FWP - Filing under Securities Act Rules 163/433 of free writing prospectuses
November 19 2024 - 4:12PM
Edgar (US Regulatory)
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Registration Statement No. 333-275898
Filed pursuant to Rule 433 |
Contingent Income Auto-Callable Securities due November
30, 2026
With the Coupon and Payment at Maturity Subject
to the Performance of the Worst Performing of the Nikkei 225 Index, the Russell 2000® Index and the S&P 500® Index
Principal at Risk Securities
This document provides a summary of the terms of the securities.
Investors should carefully review the accompanying preliminary pricing supplement, product supplement, underlying supplement, prospectus
supplement and prospectus, and “Selected Risk Considerations” below, before making a decision to invest in the securities.
| SUMMARY TERMS |
|
| Issuer: |
Royal Bank of Canada |
| Underlier: |
The Nikkei 225 Index (Bloomberg symbol: “NKY”), the Russell 2000® Index (Bloomberg symbol: “RTY”) and the S&P 500® Index (Bloomberg symbol: “SPX”) |
| Stated principal amount: |
$1,000 per security |
| Pricing date: |
November 22, 2024 |
| Original issue date: |
November 27, 2024 |
| Final determination date: |
November 24, 2026 |
| Maturity date: |
November 30, 2026 |
| Early redemption: |
If, on any determination period end date (other than the final determination date), the closing value of each underlier is greater than or equal to its initial underlier value, the securities will be automatically redeemed for an early redemption payment on the contingent payment date immediately following that determination period end date. The securities will not be redeemed early if the closing value of any underlier is less than its initial underlier value on the related determination period end date. No further payments will be made on the securities after they have been redeemed. |
| Early redemption payment: |
The early redemption payment will be an amount equal to the stated principal amount plus any contingent quarterly coupon otherwise due. |
| Contingent quarterly coupon: |
· If,
on each scheduled trading day during any determination period, the closing value of each underlier is greater than or equal to
its downside threshold value, we will pay a contingent quarterly coupon of $28.00 (2.80% of the stated principal amount, or a rate of
11.20% per annum) per security on the related contingent payment date.
· If,
on any scheduled trading day during any determination period, the closing value of any underlier is less than its downside threshold
value, no contingent quarterly coupon will be made with respect to that determination period. |
| Payment at maturity: |
If the securities are not redeemed prior to maturity, you will receive
on the maturity date a cash payment per security determined as follows:
· If
the final underlier value of the worst performing underlier is greater than or equal to its downside threshold value:
stated principal amount + any contingent quarterly
coupon otherwise due
· If
the final underlier value of the worst performing underlier is less than its downside threshold value:
stated principal amount × underlier performance
factor of the worst performing underlier
Under these circumstances, the payment at maturity will be less than
75% of the stated principal amount. You will lose at least 25% and possibly all of the stated principal amount if the final underlier
value of the worst performing underlier is less than its downside threshold value.
|
| Underlier performance factor: |
With respect to each underlier: final underlier value / initial underlier value |
| Downside threshold value: |
With respect to each underlier, 75% of its initial underlier value |
| Initial underlier value: |
With respect to each underlier, the closing value of that underlier on the pricing date |
| Final underlier value: |
With respect to each underlier, the closing value of that underlier on the final determination date |
| Worst performing underlier: |
The underlier with the lowest underlier performance factor |
| Determination periods: |
The first determination period will consist of each scheduled trading day from but excluding the pricing date to and including the first determination period end date. Each subsequent determination period will consist of each scheduled trading day from but excluding a determination period end date to and including the next following determination period end date. |
| Determination period end dates: |
Quarterly |
| Contingent payment dates: |
Quarterly |
| CUSIP / ISIN |
78017GYF2 / US78017GYF26 |
| Preliminary pricing supplement: |
https://www.sec.gov/Archives/edgar/data/1000275/000095010324016457/dp220781_424b2-mseln606wof.htm |
|
HYPOTHETICAL PAYOUT AT MATURITY*
(if the securities are not redeemed)
|
| Percentage Change in the Worst Performing Underlier |
Payment at Maturity (excluding any coupon payable at maturity) |
| 40.00% |
$1,000.00 |
| 30.00% |
$1,000.00 |
| 20.00% |
$1,000.00 |
| 10.00% |
$1,000.00 |
| 0.00% |
$1,000.00 |
| -10.00% |
$1,000.00 |
| -20.00% |
$1,000.00 |
| -25.00% |
$1,000.00 |
| -25.01% |
$749.90 |
| -30.00% |
$700.00 |
| -40.00% |
$600.00 |
| -50.00% |
$500.00 |
| -60.00% |
$400.00 |
| -70.00% |
$300.00 |
| -80.00% |
$200.00 |
| -90.00% |
$100.00 |
| -100.00% |
$0.00 |
* All payments are subject to our credit risk
The initial estimated value of the securities determined by us as of
the pricing date, which we refer to as the initial estimated value, is expected to be between $914.18 and $964.18 per security and will
be less than the public offering price of the securities. We describe the determination of the initial estimated value in more detail
in the accompanying preliminary pricing supplement.
Underliers
For more information about the underliers, including historical
performance information, see the accompanying preliminary pricing supplement.
Selected Risk Considerations
An investment in the securities involves significant risks.
We urge you to consult your investment, legal, tax, accounting and other advisers before you invest in the securities. Some of the risks
that apply to an investment in the securities are summarized below, but we urge you to read also the “Risk Factors” sections
of the accompanying prospectus, prospectus supplement, product supplement and preliminary pricing supplement. You should not purchase
the securities unless you understand and can bear the risks of investing in the securities.
Risks Relating to the Terms and Structure of the
Securities
| § | The securities do not guarantee the return of any principal. |
| § | Any payment on the securities will be determined solely by
the underlier with the worst performance even if the other underliers perform better. |
| § | You will not receive any contingent quarterly coupon for
any determination period where the closing value of any underlier is less than its downside threshold value on any scheduled trading day
during that determination period. |
| § | You will not participate in any appreciation in the value
of any underlier. |
| § | The potential contingent repayment of principal represented
by the downside threshold value applies only at maturity. |
| § | The automatic early redemption feature may limit the term
of your investment to approximately three months. |
| § | Payments on the securities are subject to our credit risk,
and market perceptions about our creditworthiness may adversely affect the market value of the securities. |
| § | Your return on the securities may be lower than the return
on a conventional debt security of comparable maturity. |
| § | Any payment on the securities will be determined based on
the closing values of the underliers on the dates specified. |
| § | The U.S. federal income tax consequences of an investment
in the securities are uncertain. |
Risks Relating to the Initial Estimated Value of
the Securities and the Secondary Market for the Securities
| § | There may not be an active trading market for the securities;
sales in the secondary market may result in significant losses. |
| § | The initial estimated value of the securities will be less
than the public offering price. |
| § | The initial estimated value of the securities is only an
estimate, calculated as of the pricing date. |
Risks Relating to Conflicts of Interest and Our Trading
Activities
| § | Hedging and trading activity by us and our affiliates could
potentially adversely affect the value of the securities. |
| § | Our and our affiliates’ business and trading activities
may create conflicts of interest. |
| § | RBCCM’s role as calculation agent may create conflicts
of interest. |
Risks Relating to the Underliers
| § | You will not have any rights to the securities included in
any underlier. |
| § | The securities are subject to small-capitalization companies
risk with respect to the RTY Index. |
| § | The securities are subject to risks relating to non-U.S.
securities markets with respect to the NKY Index. |
| § | The securities do not provide direct exposure to fluctuations
in exchange rates between the U.S. dollar and the yen with respect to the NKY Index. |
| § | We may accelerate the securities if a change-in-law event
occurs. |
| § | Any payment on the securities may be postponed and adversely
affected by the occurrence of a market disruption event. |
| § | Adjustments to an underlier could adversely affect any payments
on the securities. |
| § | Governmental regulatory actions, such as sanctions, could
adversely affect your investment in the securities. |
| |
Tax Considerations
You should review carefully the discussion in the accompanying
preliminary pricing supplement under the caption “United States Federal Income Tax Considerations” concerning the U.S. federal
income tax consequences of an investment in the securities, and you should consult your tax adviser.
Royal Bank of Canada has filed a registration statement (including
a product supplement, underlying supplement, prospectus supplement and prospectus) with the SEC for the offering to which this document
relates. Before you invest, you should read those documents and the other documents that we have filed with the SEC for more complete
information about us and this offering. You may get these documents for free by visiting EDGAR on the SEC website at www.sec.gov. Alternatively,
we, any agent or any dealer participating in this offering will arrange to send you those documents if you so request by calling toll-free
at 1-877-688-2301.
As used in this document, “Royal Bank of Canada,”
“we,” “our” and “us” mean only Royal Bank of Canada. Capitalized terms used in this document without
definition are as defined in the accompanying preliminary pricing supplement.
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Royal Bank of Canada (NYSE:RY)
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