We could not find any results for:
Make sure your spelling is correct or try broadening your search.
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 | |
---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 103.94 | 0 | 01:00:00 |
Filed Pursuant to Rule 424(b)(2)
Registration Statement No. 333-275898
|
|||
Pricing Supplement
Dated May 20, 2024
To the Product Prospectus Supplement ERN-ES-1, the Prospectus Supplement and the Prospectus, Each Dated
December 20, 2023
|
$624,000
Barrier Enhanced Return Notes
Linked to the Class A Common Stock of Meta Platforms,
Inc., Due November 25, 2025
Royal Bank of Canada
|
||
Reference Stock
|
Initial Stock Price
|
Barrier Price*
|
||
Meta Platforms, Inc. (“META”)
|
$468.84
|
$318.81, which is 68.00% of the Initial Stock Price
|
• |
If the Final Stock Price of the Reference Stock is greater than the Initial Stock Price, the Notes will pay at maturity a return equal to 150.00% of the Percentage Change, subject to the Maximum Redemption
Amount of 141.10% of the principal amount of the Notes.
|
• |
If the Final Stock Price is less than or equal to the Initial Stock Price, but is greater than or equal to the Barrier Price, the Notes will pay the principal amount at maturity.
|
• |
If the Final Stock Price is less than the Barrier Price, investors will receive 2.13 shares of the Reference Stock (rounded to two decimal places) for each $1,000 in principal amount of the Notes (or, under
the circumstances described below, the cash value of those shares), the value of which is expected to be significantly less than the principal amount of the Notes. In this case, the Notes provide a
negative return and you will lose some, and possibly all, of your principal investment in the Notes.
|
• |
Any payments on the Notes are subject to our credit risk.
|
• |
The Notes do not pay interest.
|
• |
The Notes will not be listed on any securities exchange.
|
Per Note
|
Total
|
||
Price to public(1)
|
100.00%
|
$624,000
|
|
Underwriting discounts and commissions(1)
|
1.50%
|
$9,360
|
|
Proceeds to Royal Bank of Canada
|
98.50%
|
$614,640
|
|
|
Barrier Enhanced Return Notes
|
Issuer:
|
Royal Bank of Canada (the “Bank”)
|
Underwriter:
|
RBC Capital Markets, LLC (“RBCCM”)
|
Reference Stock:
|
The Class A common stock of Meta Platforms, Inc. (“META”)
|
Minimum Investment:
|
$1,000 and minimum denominations of $1,000 in excess thereof
|
Trade Date (Pricing
Date):
|
May 20, 2024
|
Issue Date:
|
May 23, 2024
|
Valuation Date:
|
November 20, 2025
|
Maturity Date:
|
November 25, 2025, subject to extension for market and other disruptions, as described in the product prospectus supplement dated December 20, 2023.
|
Payment at Maturity (if
held to maturity):
|
If the Final Stock Price is greater than the Initial Stock Price (that is, the Percentage Change is positive), then the investor will receive an
amount per $1,000 principal amount per Note equal to the lesser of:
1. Principal Amount + [Principal Amount x (Percentage Change x
Participation Rate)] and
2. the Maximum Redemption Amount
If the Final Stock Price is less than or equal to the Initial Stock Price but is greater
than or equal to the Barrier Price (that is, the Percentage Change is between 0% and ‑32.00%), then the investor will receive the principal amount only.
If the Final Stock Price is less than the Barrier Price (that is, the Percentage Change is less than -32.00%), the investor
will receive, for each $1,000 in principal amount of the Notes, a number of shares of the Reference Stock equal to the Physical Delivery Amount (or, under the circumstances described below, the Cash Delivery Amount).
In this case, your return on the Notes will be negative and the value of the shares of the Reference Stock (or the cash value of those shares, as the case may be) that
you receive will represent a loss of a substantial portion, and possibly all, of your principal amount of the Notes.
|
Percentage Change:
|
The Percentage Change, expressed as a percentage, is calculated using the following formula:
|
Initial Stock Price:
|
The closing price of the Reference Stock on the Trade Date, as set forth on the cover page of this pricing supplement.
|
Final Stock Price:
|
The closing price of the Reference Stock on the Valuation Date.
|
Participation Rate:
|
150.00% (subject to the Maximum Redemption Amount).
|
Maximum Redemption
Amount:
|
$1,411.00 per $1,000 in principal amount (141.10% multiplied by the principal amount).
|
Barrier Percentage:
|
32%
|
Barrier Price:
|
68% of the Initial Stock Price, as set forth on the cover page of this pricing supplement.
|
Physical Delivery
Amount:
|
For each $1,000 in principal amount of the Notes, 2.13 shares of the Reference Stock, which is equal to $1,000 divided by the Initial Stock Price (rounded to two decimal places), subject
|
|
|
Barrier Enhanced Return Notes
|
to adjustment as described in the product prospectus supplement. Fractional shares will be paid in cash.
If, due to an event beyond our control, we determine it is impossible, impracticable (including unduly burdensome) or illegal for us to deliver shares of the Reference Stock to you at maturity, we will pay
the Cash Delivery Amount in lieu of delivering shares.
|
|
Cash Delivery Amount:
|
The product of the Physical Delivery Amount multiplied by the Final Stock Price.
|
Principal at Risk:
|
The Notes are NOT principal protected. You may lose all or a substantial portion of your principal amount at maturity if the Final Stock Price is
less than the Barrier Price.
|
Calculation Agent:
|
RBCCM
|
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 Note as a pre-paid derivative contract linked to
the Reference Stock 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 Ashurst LLP, our
special U.S. tax counsel) in the product prospectus supplement dated December 20, 2023 under “Supplemental Discussion of U.S. Federal Income Tax Consequences,” which apply to the Notes.
|
Secondary Market:
|
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.
|
Listing:
|
The Notes will not be listed on any securities exchange.
|
Clearance and
Settlement:
|
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).
|
Terms Incorporated in
the Master Note:
|
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.
|
|
|
Barrier Enhanced Return Notes
|
|
|
Barrier Enhanced Return Notes
|
Example 1 —
|
Calculation of the Payment at Maturity where the Percentage Change is positive.
|
|
Percentage Change:
|
2%
|
|
Payment at Maturity:
|
$1,000 + [$1,000 x (2% x 150.00%)] = $1,000 + $30 = $1,030
|
|
On a $1,000 investment, a Percentage Change of 2% results in a Payment at Maturity of $1,030, a return of 3.00% on the Notes.
|
Example 2 —
|
Calculation of the Payment at Maturity where the Percentage Change is positive (and the Payment at Maturity is subject to the Maximum Redemption Amount).
|
|
Percentage Change:
|
40%
|
|
Payment at Maturity:
|
$1,000 + [$1,000 x (40% x 150.00%)] = $1,000 + $600 = $1,600
However, the Maximum Redemption Amount is $1,411. Accordingly, you will receive a Payment at Maturity equal to $1,411 per $1,000 in principal amount of the Notes.
|
|
On a $1,000 investment, a Percentage Change of 40% results in a Payment at Maturity of $1,411, a return of 41.10% on the Notes.
|
Example 3 —
|
Calculation of the Payment at Maturity where the Percentage Change is negative (but not by more than the Barrier Percentage).
|
|
Percentage Change:
|
-10%
|
|
Payment at Maturity:
|
At maturity, if the Percentage Change is negative BUT not by more than the Barrier Percentage, then the Payment at Maturity will equal the principal amount.
|
|
On a $1,000 investment, a Percentage Change of -10% results in a Payment at Maturity of $1,000, a return of 0% on the Notes.
|
|
|
Barrier Enhanced Return Notes
|
Example 4 —
|
Calculation of the Payment at Maturity where the Percentage Change is negative (by more than the Barrier Percentage).
|
|
Percentage Change:
|
-40%
|
|
Payment at Maturity:
|
At maturity, if the Percentage Change is negative and the Final Stock Price is less than the Barrier Price, the investor will receive the Physical Delivery Amount, or under the
circumstances described above, the Cash Delivery Amount, calculated as follows:
$1,000 + ($1,000 x -40%) = $1,000 - $400 = $600
|
|
On a $1,000 investment, a Percentage Change of ‑40% results in the investor receiving 10 shares of the Reference Stock (or, if the Cash Delivery Amount is payable instead, $600, a return
of ‑40% on the Notes). In this case, an investor will lose all or a substantial portion of the principal amount of the Notes if the Final Stock Price is less than the Barrier Price.
|
|
|
Barrier Enhanced Return Notes
|
Final Stock
Price
|
Hypothetical
Percentage
Change
|
Payment at Maturity per $1,000
in Principal Amount
|
Physical
Delivery
Amount as
Number of
Shares of the
Reference
Stock
|
Cash Delivery
Amount
|
$180.00
|
80.00%
|
$1,411.00
|
n/a
|
n/a
|
$170.00
|
70.00%
|
$1,411.00
|
n/a
|
n/a
|
$160.00
|
60.00%
|
$1,411.00
|
n/a
|
n/a
|
$150.00
|
50.00%
|
$1,411.00
|
n/a
|
n/a
|
$140.00
|
40.00%
|
$1,411.00
|
n/a
|
n/a
|
$130.00
|
30.00%
|
$1,411.00
|
n/a
|
n/a
|
$127.40
|
27.40%
|
$1,411.00
|
n/a
|
n/a
|
$120.00
|
20.00%
|
$1,300.00
|
n/a
|
n/a
|
$110.00
|
10.00%
|
$1,150.00
|
n/a
|
n/a
|
$105.00
|
5.00%
|
$1,075.00
|
n/a
|
n/a
|
$102.00
|
2.00%
|
$1,030.00
|
n/a
|
n/a
|
$100.00
|
0.00%
|
$1,000.00
|
n/a
|
n/a
|
$90.00
|
-10.00%
|
$1,000.00
|
n/a
|
n/a
|
$80.00
|
-20.00%
|
$1,000.00
|
n/a
|
n/a
|
$70.00
|
-30.00%
|
$1,000.00
|
n/a
|
n/a
|
$68.00
|
-32.00%
|
$1,000.00
|
n/a
|
n/a
|
$67.99
|
-32.01%
|
Physical or Cash Delivery Amount
|
10
|
$679.90
|
$60.00
|
-40.00%
|
Physical or Cash Delivery Amount
|
10
|
$600.00
|
$50.00
|
-50.00%
|
Physical or Cash Delivery Amount
|
10
|
$500.00
|
$40.00
|
-60.00%
|
Physical or Cash Delivery Amount
|
10
|
$400.00
|
$30.00
|
-70.00%
|
Physical or Cash Delivery Amount
|
10
|
$300.00
|
$20.00
|
-80.00%
|
Physical or Cash Delivery Amount
|
10
|
$200.00
|
$10.00
|
-90.00%
|
Physical or Cash Delivery Amount
|
10
|
$100.00
|
$0.00
|
-100.00%
|
Physical or Cash Delivery Amount
|
10
|
$0.00
|
|
|
Barrier Enhanced Return Notes
|
• |
You May Lose All or a Portion 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 Reference Stock. If the Final Stock Price is less than the Barrier Price, the value of the shares or cash that you receive at maturity will
represent a loss of your principal that is proportionate to the decline in the closing price of the Reference Stock from the Trade Date to the Valuation Date. If you receive shares of the Reference Stock, they may decrease in value
between the Valuation Date and the Maturity Date, further reducing your return on the Notes.
|
• |
The Notes Do Not Pay Interest and Your Return May Be Lower than the Return on a Conventional Debt Security of Comparable Maturity — There will be no periodic interest payments on the Notes as there would be on a conventional fixed-rate or floating-rate debt security having the same 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.
|
• |
Your Potential Payment at Maturity Is Limited — The Notes will provide less opportunity to participate in the
appreciation of the Reference Stock than an investment in a security linked to the Reference Stock providing full participation in the appreciation, because the Payment at Maturity will not exceed the Maximum Redemption Amount.
Accordingly, your return on the Notes may be less than your return would be if you made an investment in a security directly linked to the positive performance of the Reference Stock.
|
• |
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 the amount due on the Maturity Date is dependent upon our ability to repay our obligations at that time. This will be the case
even if the price of the Reference Stock increases after the Trade Date. No assurance can be given as to what our financial condition will be at maturity of the Notes.
|
• |
The Payments on the Notes Are Subject to Postponement Due to Market Disruption Events and Adjustments — The Payment at
Maturity 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.
|
• |
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.
|
|
|
Barrier Enhanced Return Notes
|
• |
The Initial Estimated Value of the Notes Is Less than the Price to the Public — The initial estimated value of the
Notes 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 price of the Reference
Stock, the borrowing rate we pay to issue securities of this kind, and the inclusion in the price to the public of the underwriting discount, the referral fee 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, the referral fee or the hedging costs relating to the Notes. In addition to bid-ask spreads, the value of the Notes determined 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.
|
• |
The Initial Estimated Value of the Notes that Is 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.
|
• |
Our Business Activities May Create Conflicts of Interest — We and our affiliates expect to engage in trading
activities related to the Reference Stock Issuer 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 price of the Reference Stock, 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 Reference Stock Issuer,
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 Stock. 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
price of the Reference Stock, and, therefore, the market value of the Notes.
|
• |
Owning the Notes Is Not the Same as Owning the Reference Stock – The return on your Notes is unlikely to reflect the return you would realize if you actually owned the
Reference Stock. For example, you will not receive or be entitled to receive any dividend payments or other distributions on the Reference Stock during the term of your Notes;
|
|
|
Barrier Enhanced Return Notes
|
• |
There Is No Affiliation Between the Reference Stock Issuer and RBCCM, and RBCCM Is Not Responsible for any Disclosure by the Reference Stock Issuer — We are not affiliated with the Reference Stock Issuer. However, we and our affiliates may currently, or from time to time in the future engage in business with the Reference Stock Issuer. Nevertheless, neither
we nor our affiliates assume any responsibilities for the accuracy or the completeness of any information that any other company prepares. You, as an investor in the Notes, should make your own investigation into the Reference Stock.
The Reference Stock Issuer is not involved in this offering and has no obligation of any sort with respect to your Notes. The Reference Stock Issuer has no obligation to take your interests into consideration for any reason, including
when taking any corporate actions that might affect the value of your Notes.
|
|
|
Barrier Enhanced Return Notes
|
|
|
Barrier Enhanced Return Notes
|
|
|
Barrier Enhanced Return Notes
|
|
|
Barrier Enhanced Return Notes
|
|
|
Barrier Enhanced Return Notes
|
|
|
Barrier Enhanced Return Notes
|
1 Year Royal Bank of Canada Chart |
1 Month Royal Bank of Canada Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions