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Share Name | Share Symbol | Market | Type |
---|---|---|---|
Royal Bank of Canada | NYSE:RY | NYSE | Common Stock |
Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
1.47 | 1.41% | 106.08 | 105.77 | 103.95 | 103.95 | 862,648 | 01:00:00 |
Filed Pursuant to Rule 424(b)(2)
Registration Statement No. 333-275898
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Pricing Supplement
Dated May 8, 2024
To the Product Prospectus Supplement CCBN-1, the Prospectus Supplement and the Prospectus, Each Dated December
20, 2023
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$750,000
Auto-Callable Contingent Coupon Barrier Notes
Linked to the Lesser Performing of Two Exchange Traded Funds, due May 13, 2027 Royal Bank of Canada |
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Reference Assets
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Initial Prices
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Coupon Barriers and Trigger Prices
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Energy Select Sector SPDR® Fund (“XLE”)
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$93.10
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$74.48, which is 80% of its Initial Price
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VanEck® Semiconductor ETF (“SMH”)
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$221.40
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$177.12, which is 80% of its Initial Price
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Issuer:
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Royal Bank of Canada
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Stock Exchange Listing:
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None
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Trade Date:
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May 8, 2024
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Principal Amount:
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$1,000 per Note
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Issue Date:
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May 13, 2024
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Maturity Date:
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May 13, 2027
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Observation Dates:
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Quarterly, as set forth below.
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Coupon Payment Dates:
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Quarterly, as set forth below.
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Valuation Date:
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May 10, 2027
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Contingent Coupon Rate:
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17.00% per annum
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Contingent Coupon:
|
If the Notes have not been previously called and the Observation Price of each Reference Asset is greater than or equal to its
Coupon Barrier on the applicable Observation Date, we will pay the Contingent Coupon applicable to that Observation Date. You may not receive any Contingent Coupons during the term of the Notes.
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Payment at Maturity (if
held to maturity):
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If the Notes are not previously called, we will pay you at maturity an amount based on the Final Price of the Lesser Performing Reference Asset:
For each $1,000 in principal amount, $1,000 plus the Contingent Coupon at maturity, unless the Final Price of the Lesser Performing Reference Asset is less than its Trigger Price.
If the Final Price of the Lesser Performing Reference Asset is less than its Trigger Price, then the investor will receive at maturity, for each $1,000 in principal amount, a cash payment equal to:
$1,000 + ($1,000 x Percentage Change of the Lesser Performing Reference Asset) Investors in the Notes could lose some or all of their principal amount if the Final Price of the Lesser Performing Reference Asset is less than its Trigger Price.
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Lesser Performing
Reference Asset:
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The Reference Asset with the lowest Percentage Change.
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Percentage Change:
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Expressed as a percentage for each Reference Asset, as an amount equal to the quotient of (a) its Final Price minus its Initial Price divided by (b) its Initial Price
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Call Feature:
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If, on any quarterly Observation Date beginning on November 8, 2024, the Observation Price of each Reference Asset is greater than or equal to its Initial Price, then
the Notes will be automatically called, for 100% of the principal amount plus the related Contingent Coupon.
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Observation Price:
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For each Reference Asset, its closing price, on the applicable Observation Date.
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Final Price:
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For each Reference Asset, its closing price on the Valuation Date.
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CUSIP:
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78017FYW7
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Per Note
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Total
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Price to public(1)
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100.00%
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$750,000
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Underwriting discounts and commissions(1)
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1.00%
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$7,500
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Proceeds to Royal Bank of Canada
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99.00%
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$742,500
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Auto-Callable Contingent Coupon Barrier Notes
Royal Bank of Canada |
General:
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This pricing supplement relates to an offering of Auto-Callable Contingent Coupon Barrier Notes (the “Notes”) linked to the lesser performing of the following (each,
a “Reference Asset,” and collectively, the “Reference Assets”):
(i) Energy Select Sector SPDR® Fund (“XLE”); and
(ii) VanEck® Semiconductor ETF (“SMH”)
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Issuer:
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Royal Bank of Canada (the “Bank”)
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Trade Date:
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May 8, 2024
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Issue Date:
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May 13, 2024
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Valuation Date:
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May 10, 2027
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Maturity Date:
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May 13, 2027
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Denominations:
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Minimum denomination of $1,000, and integral multiples of $1,000 thereafter.
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Contingent Coupon:
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We will pay you a Contingent Coupon during the term of the Notes, periodically in arrears on each Coupon Payment Date, under the conditions described below:
• If the
Observation Price of each Reference Asset is greater than or equal to its Coupon Barrier on the applicable
Observation Date, we will pay the Contingent Coupon applicable to that Observation Date.
• If the
Observation Price of either of the Reference Assets is less than its Coupon Barrier on the applicable
Observation Date, we will not pay you the Contingent Coupon applicable to that Observation Date.
You may not receive a Contingent Coupon for one or more quarterly periods during the term of the Notes.
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Contingent Coupon
Rate: |
17.00% per annum (4.25% per quarter)
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Observation Dates and
Coupon Payment Dates: |
Quarterly, as set forth below:
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Observation Dates
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Coupon Payment Dates
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August 8, 2024
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August 13, 2024
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November 8, 2024
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November 14, 2024
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February 10, 2025
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February 13, 2025
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May 8, 2025
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May 13, 2025
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August 8, 2025
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August 13, 2025
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November 10, 2025
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November 14, 2025
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February 9, 2026
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February 12, 2026
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May 8, 2026
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May 13, 2026
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August 10, 2026
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August 13, 2026
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November 9, 2026
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November 13, 2026
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February 8, 2027
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February 11, 2027
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May 10, 2027 (the Valuation Date)
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May 13, 2027 (the Maturity Date)
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Auto-Callable Contingent Coupon Barrier Notes
Royal Bank of Canada |
Record Dates:
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The record date for each Coupon Payment Date will be one business day prior to that scheduled Coupon Payment Date; provided, however, that any Contingent Coupon payable at
maturity or upon a call will be payable to the person to whom the Payment at Maturity or upon the call, as the case may be, will be payable.
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Call Feature:
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If, on any quarterly Observation Date beginning in November 2024, the Observation Price of each Reference Asset is greater than or equal to its Initial Price, then the
Notes will be automatically called.
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Payment if Called:
|
If the Notes are automatically called, then, on the applicable Call Settlement Date, for each $1,000 in principal amount, you will receive $1,000 plus the Contingent
Coupon otherwise due on that Call Settlement Date.
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Call Settlement Dates:
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If the Notes are called on any quarterly Observation Date beginning in November 2024, the Call Settlement Date will be the Coupon Payment Date corresponding to that
Observation Date.
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Initial Price:
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For each Reference Asset, its closing price, on the Trade Date, as set forth on the cover page of this pricing supplement.
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Final Price:
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For each Reference Asset, its closing price, on the Valuation Date.
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Observation Price:
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For each Reference Asset, its closing price, on any quarterly Observation Date.
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Coupon Barrier and
Trigger Price:
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For each Reference Asset, 80% of its Initial Price, as set forth on the cover page of this pricing supplement.
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Payment at Maturity (if
not previously called
and held to maturity):
|
If the Notes are not previously called, we will pay you at maturity an amount based on the Final Price of the Lesser Performing Reference Asset:
• If the Final Price of
the Lesser Performing Reference Asset is greater than or equal to its Trigger Price, we will pay you a cash payment equal to the principal amount plus the Contingent Coupon
otherwise due on the Maturity Date.
• If the Final Price
of the Lesser Performing Reference Asset is less than its Trigger Price, you will receive at maturity, for each $1,000 in principal amount, a cash payment equal to:
$1,000 + ($1,000 x Percentage Change of the Lesser Performing Reference Asset) In this case, the amount of cash that you receive at maturity, if any, will be less than your principal amount, resulting in a loss that is proportionate to the decline of
the Lesser Performing Reference Asset from the Trade Date to the Valuation Date. Investors in the Notes will lose some or all of their principal amount if the Final Price of the Lesser Performing
Reference Asset is less than its Trigger Price.
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Stock Settlement:
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Not applicable. Payments on the Notes will be made solely in cash.
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Percentage Change:
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With respect to each Reference Asset:
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Lesser Performing
Reference Asset: |
The Reference Asset with the lowest Percentage Change.
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Market Disruption
Events: |
The occurrence of a market disruption event (or a non-trading day) as to either of the Reference Assets will result in the postponement of an Observation Date or
the Valuation Date as to that Reference Asset, as described in the product prospectus supplement, but not to any non-affected Reference Asset.
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Calculation Agent:
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RBC Capital Markets, LLC (“RBCCM”)
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Auto-Callable Contingent Coupon Barrier Notes
Royal Bank of Canada |
U.S. Tax Treatment:
|
By purchasing a Note, each holder agrees (in the absence of a change in law, an administrative determination or a judicial ruling to the contrary) to treat the
Notes as a callable pre-paid cash-settled contingent income-bearing derivative contract linked to the Reference Assets for U.S. federal income tax purposes. However, the U.S. federal income tax consequences of your investment in the
Notes are uncertain and the Internal Revenue Service could assert that the Notes should be taxed in a manner that is different from that described in the preceding sentence. Please see the section below, “Supplemental Discussion of U.S.
Federal Income Tax Consequences,” and the discussion (including the opinion of our special U.S. tax counsel, Ashurst LLP) in the product prospectus supplement dated December 20, 2023 under “Supplemental Discussion of U.S. Federal Income
Tax Consequences,” which apply to the Notes.
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Secondary Market:
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RBCCM (or one of its affiliates), though not obligated to do so, may maintain a secondary market in the Notes after the issue date. The amount that you may receive
upon sale of your Notes prior to maturity may be less than the principal amount of your Notes.
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Listing:
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The Notes will not be listed on any securities exchange.
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Clearance and
Settlement:
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DTC global (including through its indirect participants Euroclear and Clearstream, Luxembourg as described under “Ownership and Book-Entry Issuance” in the
prospectus dated December 20, 2023).
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Terms Incorporated in
the Master Note:
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All of the terms appearing on the cover page and above the item captioned “Secondary Market” in this section and the terms appearing under the caption “General
Terms of the Notes” in the product prospectus supplement, as modified by this pricing supplement.
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Auto-Callable Contingent Coupon Barrier Notes
Royal Bank of Canada |
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Auto-Callable Contingent Coupon Barrier Notes
Royal Bank of Canada |
Hypothetical Initial Price (for each Reference Asset):
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$100*
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|
Hypothetical Coupon Barrier and Hypothetical Trigger Price (for each Reference Asset):
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$80, which is 80% of the hypothetical Initial Price of the Lesser Performing Reference Asset
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Contingent Coupon Rate:
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17.00% per annum (or 4.25% per quarter).
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Contingent Coupon Amount:
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$42.50 per quarter
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Observation Dates:
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Quarterly
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Principal Amount:
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$1,000 per Note
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Hypothetical Final Price of
the Lesser Performing
Reference Asset
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Payment at Maturity as
Percentage of Principal
Amount
|
Payment at Maturity
(assuming that the Notes
were not previously called)
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$150.00
|
104.25%*
|
$1,042.50*
|
$140.00
|
104.25%*
|
$1,042.50*
|
$130.00
|
104.25%*
|
$1,042.50*
|
$120.00
|
104.25%*
|
$1,042.50*
|
$110.00
|
104.25%*
|
$1,042.50*
|
$100.00
|
104.25%*
|
$1,042.50*
|
$90.00
|
104.25%*
|
$1,042.50*
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$80.00
|
104.25%*
|
$1,042.50*
|
$79.99
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79.990%
|
$799.90
|
$70.00
|
70.000%
|
$700.00
|
$60.00
|
60.000%
|
$600.00
|
$50.00
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50.000%
|
$500.00
|
$40.00
|
40.000%
|
$400.00
|
$25.00
|
25.000%
|
$250.00
|
$10.00
|
10.000%
|
$100.00
|
$0.00
|
0.000%
|
$0.00
|
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|
Auto-Callable Contingent Coupon Barrier Notes
Royal Bank of Canada |
|
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Auto-Callable Contingent Coupon Barrier Notes
Royal Bank of Canada |
• |
You May Lose Some or All of the Principal Amount at Maturity — Investors in the Notes could lose all or a substantial portion of their principal amount if there is a
decline in the price of the Lesser Performing Reference Asset between the Trade Date and the Valuation Date. If the Notes are not automatically called and the Final Price of the Lesser Performing Reference Asset is less than its Trigger
Price, the amount in cash that you receive at maturity will represent a loss of your principal that is proportionate to the decline in the price of the Lesser Performing Reference Asset from the Trade Date to the Valuation Date. Any
Contingent Coupons received on the Notes prior to the Maturity Date may not be sufficient to compensate for any such loss.
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• |
The Payments on the Notes Are Limited — The payments on the Notes will be limited to the Contingent Coupons. Accordingly, your
return on the Notes may be less than your return would be if you made an investment in the Reference Assets, the securities included in the Reference Assets, or in a security directly linked to the positive performance of the Reference
Assets.
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• |
The Notes Are Subject to an Automatic Call — If, on any quarterly Observation Date beginning in November 2024, the Observation
Price of each Reference Asset is greater than or equal to its Initial Price, then the Notes will be automatically called. If the Notes are automatically called, then, on the applicable Call Settlement Date, for each $1,000 in principal
amount, you will receive $1,000 plus the Contingent Coupon otherwise due on the applicable Call Settlement Date. You will not receive any Contingent Coupons after that payment. You may be unable to reinvest your proceeds from the
automatic call in an investment with a return that is as high as the return on the Notes would have been if they had not been called.
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• |
You May Not Receive Any Contingent Coupons — We will not necessarily pay any Contingent Coupons on the Notes. If the Observation Price of a Reference Asset on an
Observation Date is less than its Coupon Barrier, we will not pay you the Contingent Coupon applicable to that Observation Date. If the Observation Price of a Reference Asset is less than its Coupon Barrier on each of the Observation
Dates and on the Valuation Date, we will not pay you any Contingent Coupons during the term of, and you will not receive a positive return on your Notes. Generally, this non-payment of the Contingent Coupon coincides with a period of
greater risk of loss of principal on your Notes. Accordingly, if we do not pay the Contingent Coupon on the Maturity Date, you will also incur a loss of principal because, in that case, the Final Price of the Lesser Performing Reference
Asset will be less than its Trigger Price.
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• |
The Notes Are Linked to the Lesser Performing Reference Asset, Even if the Other Reference Asset Performs Better — If a Reference Asset has a Final Price that is less
than its Trigger Price, your return will be linked to the lesser performing of the two Reference Assets. Even if the Final Price of the other Reference Asset has increased compared to its Initial Price, or has experienced a decrease
that is less than that of the Lesser Performing Reference Asset, your return will only be determined by reference to the performance of the Lesser Performing Reference Asset, regardless of the performance of the other Reference Asset.
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• |
Your Payment on the Notes Will Be Determined by Reference to Each Reference Asset Individually, Not to a Basket, and the Payment at Maturity Will Be Based on the Performance
of the Lesser Performing Reference Asset — The Payment at Maturity will be determined only by reference to the performance of the Lesser Performing Reference Asset, regardless of the performance of the other Reference Asset.
The Notes are not linked to a weighted basket, in which the risk may be mitigated and diversified among each of the basket components. For example, in the case of notes linked to a weighted basket, the return would depend on the
weighted aggregate performance of the basket components reflected as the basket return. As a result, the depreciation of one basket component could be mitigated by the appreciation of the other basket component, as scaled by the
weighting of that basket component. However, in the case of the Notes, the individual performance of each of the Reference Assets would not be combined, and the depreciation of one Reference Asset would not be mitigated by any
appreciation of the other Reference Asset. Instead, your return will depend solely on the Final Price of the Lesser Performing Reference Asset.
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Auto-Callable Contingent Coupon Barrier Notes
Royal Bank of Canada |
• |
The Call Feature and the Contingent Coupon Feature Limit Your Potential Return — The return potential of the Notes is limited to the pre-specified Contingent Coupon
Rate, regardless of the appreciation of the Reference Assets. In addition, the total return on the Notes will vary based on the number of Observation Dates, if any, on which the Contingent Coupon becomes payable prior to maturity or if
the Notes are automatically called. Further, if the Notes are called due to the Call Feature, you will not receive any Contingent Coupons or any other payment in respect of any Observation Dates after the applicable Call Settlement
Date. Since the Notes could be called as early as the Observation Date occurring in November 2024, the total return on the Notes could be minimal. If the Notes are not called, you may be subject to the full downside performance of the
Lesser Performing Reference Asset even though your potential return is limited to the Contingent Coupon Rate. As a result, the return on an investment in the Notes could be less than the return on a direct investment in the Reference
Assets.
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• |
Your Return on the Notes May Be Lower than the Return on a Conventional Debt Security of Comparable Maturity — The return that you will receive on the Notes, which
could be negative, may be less than the return you could earn on other investments. Even if your return is positive, your return may be less than the return you would earn if you purchased one of our conventional senior interest bearing
debt securities.
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• |
Payments on the Notes Are Subject to Our Credit Risk, and Changes in Our Credit Ratings Are Expected to Affect the Market Value of the Notes — The Notes are our senior
unsecured debt securities. As a result, your receipt of any Contingent Coupons, if payable, and the amount due on any relevant payment date is dependent upon our ability to repay our obligations on the applicable payment dates. This
will be the case even if the prices of the Reference Assets increase after the Trade Date. No assurance can be given as to what our financial condition will be at any time during the term of the Notes.
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• |
There May Not Be an Active Trading Market for the Notes-Sales in the Secondary Market May Result in Significant Losses — There may be little or no secondary market for
the Notes. The Notes will not be listed on any securities exchange. RBCCM and our other affiliates may make a market for the Notes; however, they are not required to do so. RBCCM or any of our other affiliates may stop any market-making
activities at any time. Even if a secondary market for the Notes develops, it may not provide significant liquidity or trade at prices advantageous to you. We expect that transaction costs in any secondary market would be high. As a
result, the difference between bid and ask prices for your Notes in any secondary market could be substantial.
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• |
Prior to Maturity, the Value of the Notes Will Be Influenced by Many Unpredictable Factors — Many economic and market factors
will influence the value of the Notes. We expect that, generally, the price of each Reference Asset on any day will affect the value of the Notes more than any other single factor. However, you should not expect the value of the Notes
in the secondary market to vary in proportion to changes in the value of the Reference Assets. The value of the Notes will be affected by a number of other factors that may either offset or magnify each other, including:
|
• |
the market value of the Reference Assets;
|
• |
whether the market value of one or more of the Reference Assets is less than its Coupon Barrier or its Trigger Price;
|
• |
the expected volatility of the Reference Assets;
|
• |
the time to maturity of the Notes;
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• |
the dividend rate on the Reference Assets or on the equity securities represented by the Reference Assets;
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• |
interest and yield rates in the market generally, as well as in the markets of the equity securities represented by the Reference Assets;
|
• |
the occurrence of certain events relating to a Reference Asset that may or may not require an adjustment to the Initial Price, the Coupon Barrier and the Trigger Price;
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• |
public health, economic, financial, political, regulatory or judicial events that affect the Reference Assets or the equity securities represented by the Reference Assets or stock markets generally, and which
may affect the market value of the Reference Assets on any quarterly Observation Date; and
|
• |
our creditworthiness, including actual or anticipated downgrades in our credit ratings.
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|
Auto-Callable Contingent Coupon Barrier Notes
Royal Bank of Canada |
• |
The Initial Estimated Value of the Notes Is Less than the Price to the Public — The initial estimated value that is set forth on the cover page of this pricing
supplement does not represent a minimum price at which we, RBCCM or any of our affiliates would be willing to purchase the Notes in any secondary market (if any exists) at any time. If you attempt to sell the Notes prior to maturity,
their market value may be lower than the price you paid for them and the initial estimated value. This is due to, among other things, changes in the prices of the Reference Assets, the borrowing rate we pay to issue securities of this
kind, and the inclusion in the price to the public of the underwriting discount and the estimated costs relating to our hedging of the Notes. These factors, together with various credit, market and economic factors over the term of the
Notes, are expected to reduce the price at which you may be able to sell the Notes in any secondary market and will affect the value of the Notes in complex and unpredictable ways. Assuming no change in market conditions or any other
relevant factors, the price, if any, at which you may be able to sell your Notes prior to maturity may be less than your original purchase price, as any such sale price would not be expected to include the underwriting discount or the
hedging costs relating to the Notes. In addition to bid-ask spreads, the value of the Notes determined by RBCCM for any secondary market price is expected to be based on the secondary rate rather than the internal funding rate used to
price the Notes and determine the initial estimated value. As a result, the secondary price will be less than if the internal funding rate was used. The Notes are not designed to be short-term trading instruments. Accordingly, you
should be able and willing to hold your Notes to maturity.
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• |
The Initial Estimated Value of the Notes Set Forth on the Cover Page of this Pricing Supplement Is an Estimate Only, Calculated as of the Time the Terms of the Notes Were Set
— The initial estimated value of the Notes is based on the value of our obligation to make the payments on the Notes, together with the mid-market value of the derivative embedded in the terms of the Notes. See “Structuring
the Notes” below. Our estimate is based on a variety of assumptions, including our credit spreads, expectations as to dividends, interest rates and volatility, and the expected term of the Notes. These assumptions are based on certain
forecasts about future events, which may prove to be incorrect. Other entities may value the Notes or similar securities at a price that is significantly different than we do.
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• |
Our Business Activities and Those of Our Affiliates May Create Conflicts of Interest — We and our affiliates expect to engage in trading activities related to the
Notes included in or represented by the Reference Assets that are not for the account of holders of the Notes or on their behalf. These trading activities may present a conflict between the holders’ interests in the Notes and the
interests we and our affiliates will have in their proprietary accounts, in facilitating transactions, including options and other derivatives transactions, for their customers and in accounts under their management. These trading
activities, if they influence the prices of the Reference Assets, could be adverse to the interests of the holders of the Notes. We and one or more of our affiliates may, at present or in the future, engage in business with the
securities included in or represented by the Reference Assets, including making loans to or providing advisory services. These services could include investment banking and merger and acquisition advisory services. These activities may
present a conflict between our or one or more of our affiliates’ obligations and your interests as a holder of the Notes. Moreover, we and our affiliates may have published, and in the future expect to publish, research reports with
respect to the Reference Assets or securities included in or represented by the Reference Assets. This research is modified from time to time without notice and may express opinions or provide recommendations that are inconsistent with
purchasing or holding the Notes. Any of these activities by us or one or more of our affiliates may affect the prices of the Reference Assets and, therefore, the market value of the Notes.
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Auto-Callable Contingent Coupon Barrier Notes
Royal Bank of Canada |
• |
An Investment in the Notes Is Subject to Risks Associated with Specific Economic Sectors— The stocks held by each exchange traded fund to which the Notes are linked are
issued by companies engaged in a specific sector of the economy, specifically, the energy industry, as to the XLE, and the semiconductor industry, as to the SMH. Accordingly, an investment in the Notes is subject to the specific risks
of companies that operate in each of those sectors. An investment in the Notes may accordingly be more risky than a security linked to a more diversified set of securities. In addition, as of May 8, 2024, three companies held by the XLE
represented approximately 52.70% of the XLE’s holdings and three companies held by SMH represented approximately 41% of SMH’s holdings. Adverse changes in the prices of the shares of these companies would have a disproportionately
adverse impact on the value of the Notes.
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• |
Owning the Notes Is Not the Same as Owning Shares of the Reference Assets or the Securities Represented by the Reference Assets — The return on your Notes is unlikely
to reflect the return you would realize if you actually owned shares of the Reference Assets or the securities represented by the Reference Assets. For instance, you will not receive or be entitled to receive any dividend payments or
other distributions on those securities during the term of your Notes. As an owner of the Notes, you will not have voting rights or any other rights that holders of those securities may have. Furthermore, the Reference Assets may
appreciate substantially during the term of the Notes, while your potential return will be limited to the applicable Contingent Coupon payments.
|
• |
You Must Rely on Your Own Evaluation of the Merits of an Investment Linked to the Reference Assets — In the ordinary course of their business, our affiliates may have
expressed views on expected movements in the Reference Assets or the equity securities that they represent, and may do so in the future. These views or reports may be communicated to our clients and clients of our affiliates. However,
these views are subject to change from time to time. Moreover, other professionals who transact business in markets relating to any Reference Asset may at any time have significantly different views from those of our affiliates. For
these reasons, you are encouraged to derive information concerning the Reference Assets from multiple sources, and you should not rely solely on views expressed by our affiliates.
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• |
An Investment in the Notes Is Subject to Management Risk — The Reference Assets are not managed according to traditional methods of ‘‘active’’ investment management,
which involve the buying and selling of securities based on economic, financial and market analysis and investment judgment. Instead, each Reference Asset, utilizing a ‘‘passive’’ or indexing investment approach, attempts to approximate
the investment performance of its underlying index by investing in a portfolio of securities that generally replicate its underlying index. Therefore, unless a specific security is removed from its underlying index, the Reference Asset
generally would not sell a security because the security’s issuer was in financial trouble. In addition, each Reference Asset is subject to the risk that the investment strategy of its investment advisor may not produce the intended
results.
|
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The Reference Assets and their Underlying Indices Are Different — The performance of each Reference Asset may not exactly replicate the performance of its respective
underlying index, because these Reference Assets will reflect transaction costs and fees that are not included in the calculation of its underlying index. It is also possible that the performance of these Reference Assets may not fully
replicate or may in certain circumstances diverge significantly from the performance of their underlying indices due to the temporary unavailability of certain securities in the secondary market, the performance of any derivative
instruments contained in the Reference Assets, or due to other circumstances. These Reference Assets may use a variety of instruments, including futures contracts, options, swap agreements and other instruments, in seeking performance
that corresponds to their underlying indices and in managing cash flows.
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Auto-Callable Contingent Coupon Barrier Notes
Royal Bank of Canada |
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We and Our Affiliates Do Not Have Any Affiliation with the Investment Advisor of Any Reference Asset or the Sponsor of Any Underlying Index and Are Not Responsible for Their
Public Disclosure of Information — We and our affiliates are not affiliated with the investment advisor of any Reference Asset or the sponsor of any underlying index in any way and have
no ability to control or predict their actions, including any errors in or discontinuance of disclosure regarding their methods or policies relating to the Reference Assets or the underlying indices. The investment advisor of each
Reference Asset and the sponsor of each underlying index are not involved in the offering of the Notes in any way and have no obligation to consider your interests as an owner of the Notes in taking any actions relating to the Reference
Assets or the underlying indices that might affect the value of the Notes. Neither we nor any of our affiliates has independently verified the adequacy or accuracy of the information about these entities, the Reference Assets or the
underlying indices contained in any public disclosure of information. You, as an investor in the Notes, should make your own investigation into the Reference Assets.
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The Policies of the Investment Advisor of Each Reference Asset or the Sponsor of Each Underlying Index Could Affect the Amount Payable on the Notes and Their Market Value — The
policies of the applicable investment advisor concerning the management of each Reference Asset or the applicable sponsor concerning the calculation of each underlying index, additions, deletions or substitutions of the securities held
by the Reference Assets could affect the market price of shares of the Reference Assets and, therefore, the amounts payable on the Notes and the market value of the Notes. The amounts payable on the Notes and their market value could
also be affected if the investment advisor or the sponsor change these policies, for example, by changing the manner in which an investment advisor manages the Reference Assets, or if a sponsor changes the manner in which it calculates
an underlying index, or if a Reference Asset’s investment advisor discontinues or suspends maintenance of a Reference Asset, in which case it may become difficult to determine the market value of the Notes. Neither the applicable
investment advisor nor the applicable index sponsor have any connection to the offering of the Notes, and these entities have no obligations to you as an investor in the Notes in making their decisions regarding the Reference Assets or
the underlying indices, as applicable.
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The Payments on the Notes Are Subject to Postponement due to Market Disruption Events and Adjustments — The Payment at Maturity, each Observation Date and the
Valuation Date are subject to adjustment as described in the product prospectus supplement. For a description of what constitutes a market disruption event as well as the consequences of that market disruption event, see “General Terms
of the Notes—Market Disruption Events” in the product prospectus supplement.
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Auto-Callable Contingent Coupon Barrier Notes
Royal Bank of Canada |
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Each of the component stocks in a Select Sector Index (the “SPDR® Component Stocks”) is a constituent company of the S&P 500® Index.
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The Select Sector Indices together will include all of the companies represented in the S&P 500® Index and each of the stocks in the S&P 500® Index will be allocated to one and
only one of the Select Sector Indices.
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Each constituent stock of the S&P 500® Index is assigned to a Select Sector Index on the basis of that company’s sales and earnings composition and the sensitivity of the company’s stock price
and business results to the common factors that affect other companies in each Select Sector Index.
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S&P has sole control over the removal of stocks from the S&P 500® Index and the selection of replacement stocks to be added to the S&P 500® Index.
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Each Select Sector Index is calculated by S&P using a modified “market capitalization” methodology. This design ensures that each of the component stocks within a Select Sector Index is represented in a
proportion consistent with its percentage with respect to the total market capitalization of that Select Sector Index. However, under certain conditions, the number of shares of a component stock within the Select Sector Index may be
adjusted to conform to certain Internal Revenue Code requirements.
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Auto-Callable Contingent Coupon Barrier Notes
Royal Bank of Canada |
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Auto-Callable Contingent Coupon Barrier Notes
Royal Bank of Canada |
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Auto-Callable Contingent Coupon Barrier Notes
Royal Bank of Canada |
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Auto-Callable Contingent Coupon Barrier Notes
Royal Bank of Canada |
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Auto-Callable Contingent Coupon Barrier Notes
Royal Bank of Canada |
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Auto-Callable Contingent Coupon Barrier Notes
Royal Bank of Canada |
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Auto-Callable Contingent Coupon Barrier Notes
Royal Bank of Canada |
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Auto-Callable Contingent Coupon Barrier Notes
Royal Bank of Canada |
1 Year Royal Bank of Canada Chart |
1 Month Royal Bank of Canada Chart |
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