STRATEGIC ACCELERATED REDEMPTION SECURITIES®
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Strategic Accelerated Redemption Securities® Linked to the S&P 500® Index
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Issuer
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Royal Bank of Canada (“RBC”)
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Principal Amount
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$10.00 per unit
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Term
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Approximately one year and one week, if not called on the first or second Observation Dates
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Market Measure
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S&P 500® Index (Bloomberg symbol: “SPX”)
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Automatic Call
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Automatic call if the Observation Level of the Market Measure on any of the Observation Dates is equal to or greater than the starting value
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Observation Level
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The closing level of the Market Measure on any Observation Date
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Observation Dates
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Approximately six, nine and twelve months after the pricing date
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Call Amounts
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In the event of an automatic call, the amount payable per unit will be:
· [$10.300 to $10.350] if called on the first Observation Date
· [$10.450 to $10.525] if called on the second Observation Date
· [$10.600 to $10.700] if called on the final Observation Date
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Payout Profile at Maturity
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If not called, 1-to-1 downside exposure to decreases in the Market Measure, with up to 100% of your principal at risk
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Investment
Considerations
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This investment is designed for investors who anticipate that the Observation Level on any of the Observation Dates will be equal to or greater than the starting value and, in that case, accept an early exit from the investment, and are willing to accept that their return on their investment, if any, will be capped at the Call Premium, take full downside risk and forgo interim interest payments.
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Preliminary Offering
Documents
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Exchange Listing
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No
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If the notes are not called, your investment will result in a loss; there is no guaranteed return of principal.
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Payments on the notes, including repayment of principal, are subject to the credit risk of RBC. If RBC becomes insolvent or is unable to pay its obligations, you may lose your entire investment.
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Your investment return is limited to the applicable Call Premium and may be less than a comparable investment directly in the stocks included in the Market Measure.
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The initial estimated value of the notes on the pricing date will be less than their public offering price.
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If you attempt to sell the notes prior to maturity, their market value may be lower than both the public offering price and the initial estimated value of the notes on the pricing date.
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You will have no rights of a holder of the securities represented by the Market Measure, and you will not be entitled to receive securities or dividends or other distributions by the issuers of those securities.
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