RBC structured notes: 21.30% contingent yield with autocall to 2026
Rhea-AI Filing Summary
Royal Bank of Canada is offering Trigger Autocallable Contingent Yield Notes linked to the least performing of Amazon.com, Inc. common stock and Target Corporation common stock, maturing on or about
The Contingent Coupon Rate is
Initial values set on the Strike Date were AMZN
Positive
- None.
Negative
- None.
Insights
High coupon with contingent, correlated equity risk; neutral impact.
These RBC Notes offer a
Protection of principal is contingent at maturity: if the Least Performing is below its Downside Threshold (AMZN
Key mechanics are time‑anchored to the monthly schedule from
| Pricing Supplement dated November , 2025 | Subject to Completion Dated November 11, 2025 |
Registration Statement No. 333-275898 Filed Pursuant to Rule 424(b)(2) |
Royal Bank of Canada Trigger Autocallable Contingent Yield Notes with Memory Coupon Feature
$• Notes Linked to the Least Performing of the Common Stock of Amazon.com, Inc. and the Common Stock of Target Corporation due on or about December 16, 2026
| Investment Description |
The Trigger Autocallable Contingent Yield Notes (the “Notes”) are senior unsecured debt securities issued by Royal Bank of Canada linked to the performance of the least performing of the common stock of Amazon.com, Inc. and the common stock of Target Corporation (each, an “Underlying”). We will pay a monthly Contingent Coupon payment and any previously unpaid Contingent Coupons if the closing value of each Underlying on the applicable Coupon Observation Date is greater than or equal to its Coupon Barrier. Otherwise, no coupon will be paid for that month. We will automatically call the Notes early if the closing value of each Underlying on any monthly Call Observation Date is greater than or equal to its Initial Underlying Value. If the Notes are called, we will pay you the principal amount of your Notes plus the Contingent Coupon for the applicable month and any previously unpaid Contingent Coupons, and no further amounts will be owed to you under the Notes. If the Notes are not called prior to maturity and the Final Underlying Value of each Underlying is greater than or equal to its Downside Threshold (which is the same value as its Coupon Barrier), we will pay you a cash payment at maturity equal to the principal amount of your Notes plus the Contingent Coupon for the final month and any previously unpaid Contingent Coupons. However, if the Notes are not called prior to maturity and the Final Underlying Value of the Underlying with the lowest percentage change from its Initial Underlying Value (the “Least Performing Underlying”) is less than its Downside Threshold, at maturity, we will deliver to you a number of shares of the Least Performing Underlying equal to the principal amount per Note divided by its Initial Underlying Value (the “Share Delivery Amount”) for each of your Notes, which shares will likely be worth significantly less than your principal amount and may have no value at all. Investing in the Notes involves significant risks. You will not receive a coupon for any Coupon Observation Date on which any Underlying closes below its Coupon Barrier. The Notes will not be automatically called if any Underlying closes below its Initial Underlying Value on a monthly Call Observation Date. You will likely lose a significant portion or all of your principal amount if the Notes are not called and the Final Underlying Value of the Least Performing Underlying is less than its Downside Threshold. The contingent repayment of principal applies only at maturity. Generally, the higher the Contingent Coupon Rate on a Note, the greater the risk of loss. Any payment on the Notes, including any repayment of principal, is subject to our creditworthiness. If we default on our payment obligations, you may not receive any amounts owed to you under the Notes and you could lose your entire investment. The Notes will not be listed on any securities exchange.
| Features | Key Dates |
| q | Contingent Coupon with Memory Feature — We will pay a monthly Contingent Coupon payment and any previously unpaid Contingent Coupons if the closing value of each Underlying on the applicable Coupon Observation Date is greater than or equal to its Coupon Barrier. Otherwise, no coupon will be paid for the month. |
| q | Automatically Callable — We will automatically call the Notes and pay you the principal amount of your Notes plus the Contingent Coupon otherwise due for the applicable month and any previously unpaid Contingent Coupons if the closing value of each Underlying on any monthly Call Observation Date is greater than or equal to its Initial Underlying Value. If the Notes are not called, investors will have the potential for downside equity market risk at maturity. |
| q | Downside Exposure with Contingent Repayment of Principal at Maturity — If by maturity the Notes have not been called and the Final Underlying Value of the Least Performing Underlying is greater than or equal to its Downside Threshold, we will repay the full principal amount at maturity plus the Contingent Coupon for the final month and any previously unpaid Contingent Coupons. However, if by maturity the Notes have not been called and the Final Underlying Value of the Least Performing Underlying is less than its Downside Threshold, at maturity, we will deliver to you a number of shares of the Least Performing Underlying equal to its Share Delivery Amount for each of your Notes, which shares will likely be worth significantly less than the principal amount of the Notes and may have no value at all. Accordingly, you may lose a significant portion or all of the principal amount of the Notes. Any payment on the Notes, including any repayment of principal, is subject to our creditworthiness. |
| Strike Date | November 10, 2025 |
| Trade Date | November 11, 2025 |
| Settlement Date | November 14, 2025 |
| Coupon Observation Dates1 | Monthly (see page 5) |
| Call Observation Dates1 | Monthly (see page 5) |
| Final Valuation Date1 | December 11, 2026 |
| Maturity Date1 | December 16, 2026 |
| 1 | Subject to postponement. See “General Terms of the Notes—Postponement of a Determination Date” and “General Terms of the Notes—Postponement of a Payment Date” in the accompanying product supplement. |
| NOTICE TO INVESTORS: THE NOTES ARE SIGNIFICANTLY RISKIER THAN CONVENTIONAL DEBT INSTRUMENTS. WE ARE NOT NECESSARILY OBLIGATED TO REPAY THE FULL PRINCIPAL AMOUNT OF THE NOTES AT MATURITY, AND THE NOTES CAN HAVE THE FULL DOWNSIDE MARKET RISK OF THE LEAST PERFORMING UNDERLYING. THIS MARKET RISK IS IN ADDITION TO THE CREDIT RISK INHERENT IN PURCHASING OUR DEBT OBLIGATIONS. YOU SHOULD NOT PURCHASE THE NOTES IF YOU DO NOT UNDERSTAND OR ARE NOT COMFORTABLE WITH THE SIGNIFICANT RISKS INVOLVED IN INVESTING IN THE NOTES. |
YOU SHOULD CAREFULLY CONSIDER THE RISKS DESCRIBED UNDER “KEY RISKS” BEGINNING ON PAGE 6 OF THIS PRICING SUPPLEMENT AND UNDER “RISK FACTORS” IN THE ACCOMPANYING PROSPECTUS, PROSPECTUS SUPPLEMENT AND PRODUCT SUPPLEMENT BEFORE PURCHASING ANY NOTES. EVENTS RELATING TO ANY OF THOSE RISKS, OR OTHER RISKS AND UNCERTAINTIES, COULD ADVERSELY AFFECT THE MARKET VALUE OF, AND THE RETURN ON, YOUR NOTES. YOU COULD LOSE A SIGNIFICANT PORTION OR ALL OF THE PRINCIPAL AMOUNT OF YOUR NOTES.
| Note Offering |
We are offering Trigger Autocallable Contingent Yield Notes Linked to the Least Performing of the Common Stock of Amazon.com, Inc. and the Common Stock of Target Corporation. The Notes will be issued in minimum denominations of $1,000, and integral multiples of $1,000 in excess thereof, with a minimum investment of $1,000. The Initial Underlying Value, Downside Threshold and Coupon Barrier of each Underlying were determined on the Strike Date.
| Underlyings | Contingent Coupon Rate | Initial Underlying Value* | Downside Threshold** | Coupon Barrier** | CUSIP / ISIN |
| Common stock of Amazon.com, Inc. (AMZN) | 21.30% per annum | $248.40 | $168.91, which is 68% of its Initial Underlying Value | $168.91, which is 68% of its Initial Underlying Value | 78017R180 / US78017R1804 |
| Common stock of Target Corporation (TGT) | $90.73 | $61.70, which is 68% of its Initial Underlying Value | $61.70, which is 68% of its Initial Underlying Value |
* With respect to each Underlying, the closing value of that Underlying on the Strike Date
** Rounded to two decimal places
See “Additional Information about Royal Bank of Canada and the Notes” in this pricing supplement. The Notes will have the terms specified in the prospectus dated December 20, 2023, the prospectus supplement dated December 20, 2023, the product supplement no. 1B dated July 22, 2025 and this pricing supplement.
None of the Securities and Exchange Commission (the “SEC”), any state securities commission or any other regulatory body has approved or disapproved of the Notes or passed upon the adequacy or accuracy of this pricing supplement. Any representation to the contrary is a criminal offense. The Notes will not constitute deposits insured by the Canada Deposit Insurance Corporation, the U.S. Federal Deposit Insurance Corporation or any other Canadian or U.S. governmental agency or instrumentality. The Notes are not bail-inable notes and are not subject to conversion into our common shares under subsection 39.2(2.3) of the Canada Deposit Insurance Corporation Act.
| Price to Public | Fees and Commissions (1) | Proceeds to Us |
| Offering of the Notes | Total | Per Note | Total | Per Note | Total | Per Note |
| Notes Linked to the Least Performing of the Common Stock of Amazon.com, Inc. and the Common Stock of Target Corporation | • | $1,000 | • | $12.50 | • | $987.50 |
(1) UBS Financial Services Inc., which we refer to as UBS, will receive a commission of $12.50 per Note. See “Supplemental Plan of Distribution (Conflicts of Interest)” below.
The initial estimated value of the Notes determined by us as of the Trade Date, which we refer to as the initial estimated value, is expected to be between $928.00 and $978.00 per Note and will be less than the public offering price of the Notes. The final pricing supplement relating to the Notes will set forth the initial estimated value. The market value of the Notes at any time will reflect many factors, cannot be predicted with accuracy and may be less than this amount. We describe the determination of the initial estimated value in more detail below.
| UBS Financial Services Inc. | RBC Capital Markets, LLC |
| Additional Information about Royal Bank of Canada and the Notes |
You may revoke your offer to purchase the Notes at any time prior to the time at which we accept such offer by notifying the applicable agent. We reserve the right to change the terms of, or reject any offer to purchase, the Notes prior to their issuance. In the event of any changes to the terms of the Notes, we will notify you and you will be asked to accept such changes in connection with your purchase. You may also choose to reject such changes, in which case we may reject your offer to purchase.
You should read this pricing supplement together with the prospectus dated December 20, 2023, as supplemented by the prospectus supplement dated December 20, 2023, relating to our Senior Global Medium-Term Notes, Series J, of which the Notes are a part, and the product supplement no. 1B dated July 22, 2025. This pricing supplement, together with these documents, contains the terms of the Notes and supersedes all other prior or contemporaneous oral statements as well as any other written materials, including preliminary or indicative pricing terms, correspondence, trade ideas, structures for implementation, sample structures, fact sheets, brochures or other educational materials of ours.
We have not authorized anyone to provide any information or to make any representations other than those contained or incorporated by reference in this pricing supplement and the documents listed below. We take no responsibility for, and can provide no assurance as to the reliability of, any other information that others may give you. These documents are an offer to sell only the Notes offered hereby, but only under circumstances and in jurisdictions where it is lawful to do so. The information contained in each such document is current only as of its date.
If the information in this pricing supplement differs from the information contained in the documents listed below, you should rely on the information in this pricing supplement.
You should carefully consider, among other things, the matters set forth in “Key Risks” in this pricing supplement and “Risk Factors” in the documents listed below, as the Notes involve risks not associated with conventional debt securities. We urge you to consult your investment, legal, tax, accounting and other advisers before you invest in the Notes.
You may access these documents on the SEC website at www.sec.gov as follows (or if such address has changed, by reviewing our filings for the relevant date on the SEC website):
| ¨ | Prospectus dated December 20, 2023: https://www.sec.gov/Archives/edgar/data/1000275/000119312523299520/d645671d424b3.htm |
| ¨ | Prospectus Supplement dated December 20, 2023: https://www.sec.gov/Archives/edgar/data/1000275/000119312523299523/d638227d424b3.htm |
| ¨ | Product Supplement No. 1B dated July 22, 2025: https://www.sec.gov/Archives/edgar/data/1000275/000095010325009131/dp231901_424b2-opsn1b.htm |
Our Central Index Key, or CIK, on the SEC website is 1000275. As used in this pricing supplement, “Royal Bank of Canada,” the “Bank,” “we,” “our” and “us” mean only Royal Bank of Canada.
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| Selected Purchase Considerations |
The Notes may be appropriate for you if, among other considerations:
| ¨ | You fully understand the risks inherent in an investment in the Notes, including the risk of loss of your entire initial investment. |
| ¨ | You can tolerate the loss of a significant portion or all of the principal amount of the Notes and are willing to make an investment that may have the full downside market risk of the Least Performing Underlying. |
| ¨ | You believe that the closing value of each Underlying will be greater than or equal to its Coupon Barrier on most or all of the Coupon Observation Dates and greater than or equal to its Downside Threshold on the Final Valuation Date. |
| ¨ | You can tolerate receiving shares of any Underlying at maturity likely to be worth significantly less than your principal amount and that may have no value at all. |
| ¨ | You are willing to make an investment whose return is limited to any Contingent Coupon payments paid on the Notes, regardless of any potential appreciation of any Underlying, which could be significant. |
| ¨ | You are willing to invest in the Notes based on the Contingent Coupon Rate set forth on the cover page of this pricing supplement. |
| ¨ | You do not seek guaranteed current income from your investment and are willing to forgo the dividends paid on the Underlyings. |
| ¨ | You can tolerate fluctuations in the price of the Notes prior to maturity that may be similar to or exceed the downside fluctuations in the values of the Underlyings. |
| ¨ | You are willing to accept individual exposure to each Underlying and that the performance of an Underlying will not be offset or mitigated by the performance of the other Underlying. |
| ¨ | You fully understand and accept the risks associated with each Underlying. |
| ¨ | You are willing to invest in Notes that may be called early and you are otherwise willing to hold the Notes to maturity and accept that there may be little or no secondary market for the Notes. |
| ¨ | You are willing to assume our credit risk for all payments under the Notes, and understand that if we default on our obligations, you may not receive any amounts due to you, including any repayment of principal. |
The Notes may not be appropriate for you if, among other considerations:
| ¨ | You do not fully understand the risks inherent in an investment in the Notes, including the risk of loss of your entire initial investment. |
| ¨ | You cannot tolerate the loss of a significant portion or all of the principal amount of the Notes, and you are not willing to make an investment that may have the full downside market risk of the Least Performing Underlying. |
| ¨ | You believe that the closing value of any Underlying is likely to be below its Coupon Barrier on most or all of the Coupon Observation Dates and below its Downside Threshold on the Final Valuation Date. |
| ¨ | You cannot tolerate receiving shares of any Underlying at maturity likely to be worth significantly less than your principal amount and that may have no value at all. |
| ¨ | You seek an investment that participates in the full appreciation in the value of any Underlying or that has unlimited return potential. |
| ¨ | You are unwilling to invest in the Notes based on the Contingent Coupon Rate set forth on the cover page of this pricing supplement. |
| ¨ | You seek guaranteed current income from your investment or prefer to receive the dividends paid on the Underlyings. |
| ¨ | You cannot tolerate fluctuations in the price of the Notes prior to maturity that may be similar to or exceed the downside fluctuations in the values of the Underlyings. |
| ¨ | You are unwilling to accept individual exposure to each Underlying and that the performance of an Underlying will not be offset or mitigated by the performance of the other Underlying. |
| ¨ | You do not fully understand or accept the risks associated with each Underlying. |
| ¨ | You are unable or unwilling to hold Notes that may be called early, or you are otherwise unable or unwilling to hold the Notes to maturity, or you seek an investment for which there will be an active secondary market. |
| ¨ | You are not willing to assume our credit risk for all payments under the Notes, including any repayment of principal. |
The considerations identified above are not exhaustive. Whether or not the Notes are an appropriate investment for you will depend on your individual circumstances, and you should reach an investment decision only after you and your investment, legal, tax, accounting, and other advisers have carefully considered the appropriateness of an investment in the Notes in light of your particular circumstances. You should also review carefully the “Key Risks” in this pricing supplement and “Risk Factors” in the accompanying prospectus, prospectus supplement and product supplement for risks related to an investment in the Notes. For more information about the Underlyings, see “Information about the Underlyings” below.
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| Indicative Terms of the Notes1 |
| Issuer: | Royal Bank of Canada |
| Principal Amount: | $1,000 per Note |
| Term: | Approximately thirteen months, if not previously called |
| Underlyings: | The common stock of Amazon.com, Inc. (the “AMZN Underlying”) and the common stock of Target Corporation (the “TGT Underlying”) |
| Contingent Coupon with Memory Feature: |
If the closing value of each Underlying is greater than or equal to its Coupon Barrier on any Coupon Observation Date, we will pay you on the related Coupon Payment Date the Contingent Coupon applicable to that Coupon Observation Date and any Contingent Coupons that would have been paid on a previous Coupon Payment Date had the closing value of each Underlying been greater than or equal to its Coupon Barrier on the related Coupon Observation Date and that have not been previously paid (“Unpaid Contingent Coupons”).
If the closing value of any Underlying is less than its Coupon Barrier on any Coupon Observation Date, the Contingent Coupon applicable to that Coupon Observation Date will not be payable on the related Coupon Payment Date, and we will not make any payment to you on the relevant Contingent Coupon Payment Date.
If a Contingent Coupon is not paid on any Coupon Payment Date because the closing value of at least one Underlying is less than its Coupon Barrier on the related Coupon Observation Date, that Contingent Coupon will be paid as an Unpaid Contingent Coupon on a later Coupon Payment Date only if the closing value of each Underlying on the Coupon Observation Date related to that later Coupon Payment Date is greater than or equal to its Coupon Barrier. You will not receive any Unpaid Contingent Coupons if the closing value of at least one Underlying on each subsequent Coupon Observation Date is less than its Coupon Barrier.
The Contingent Coupon will be a fixed amount based upon equal monthly installments at the Contingent Coupon Rate, which will be a per annum rate as set forth below. |
| Contingent Coupon Rate: | 21.30% per annum. Whether Contingent Coupons will be paid on the Notes will depend on the performance of the Underlyings. |
| Automatic Call Feature: | The Notes will be called automatically if the closing value of each Underlying on any Call Observation Date (set forth on page 5) is greater than or equal to its Initial Underlying Value. If the Notes are called, we will pay you on the corresponding Coupon Payment Date (which will be the “Call Settlement Date”) an amount per Note equal to $1,000 plus the Contingent Coupon payment and any Unpaid Contingent Coupons otherwise due. No further amounts will be owed to you under the Notes. |
| Payment at Maturity: |
If the Notes are not called and the Final Underlying Value of the Least Performing Underlying is greater than or equal to its Downside Threshold (and its Coupon Barrier), we will pay you at maturity an amount in cash per Note equal to $1,000 plus the Contingent Coupon and any Unpaid Contingent Coupons otherwise due.
If the Notes are not called and the Final Underlying Value of the Least Performing Underlying is less than its Downside Threshold, we will deliver to you at maturity a number of shares of the Least Performing Underlying per Note equal to its Share Delivery Amount. Fractional shares of the Least Performing Underlying will be paid in cash with a value equal to the number of fractional shares times its Final Underlying Value.
In this scenario, you will receive shares of the Least Performing Underlying that will likely be worth significantly less than the principal amount of the Notes and may have a value equal to $0. |
| Least Performing Underlying: | The Underlying with the lowest Underlying Return |
| Underlying Return: |
With respect to each Underlying,
Final Underlying Value – Initial Underlying Value Initial Underlying Value |
| Downside Threshold: | With respect to each Underlying, a percentage of its Initial Underlying Value, as specified on the cover of this pricing supplement |
| Share Delivery Amount: |
With respect to each Underlying, a number of shares of that Underlying equal to $1,000 divided by its Initial Underlying Value (rounded to four decimal places)
The Share Delivery Amount with respect to the AMZN Underlying is equal to 4.0258 per Note.
The Share Delivery Amount with respect to the TGT Underlying is equal to 11.0217 per Note. |
| Coupon Barrier: | With respect to each Underlying, a percentage of its Initial Underlying Value, as specified on the cover of this pricing supplement |
| Initial Underlying Value: | With respect to each Underlying, the closing value of that Underlying on the Strike Date, as specified on the cover of this pricing supplement. The Initial Underlying Value of each Underlying is not the closing value of that Underlying on the Trade Date. |
| Final Underlying Value: | With respect to each Underlying, the closing value of that Underlying on the Final Valuation Date |
| Calculation Agent: | RBC Capital Markets, LLC (“RBCCM”) |
| Investment Timeline |
| Strike Date: | The Initial Underlying Value, Downside Threshold, Coupon Barrier and Share Delivery Amount of each Underlying were determined. | ||
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| Monthly: |
If the closing value of each Underlying is greater than or equal to its Coupon Barrier on any Coupon Observation Date, we will pay you a Contingent Coupon payment on the applicable Coupon Payment Date and any Unpaid Contingent Coupons.
The Notes will be called if the closing value of each Underlying on any Call Observation Date is greater than or equal to its Initial Underlying Value. If the Notes are called, we will pay you an amount per Note equal to $1,000 plus the Contingent Coupon and any Unpaid Contingent Coupons otherwise due.
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| Maturity Date: |
The Final Underlying Value of each Underlying is observed on the Final Valuation Date.
If the Notes are not called and the Final Underlying Value of the Least Performing Underlying is greater than or equal to its Downside Threshold (and its Coupon Barrier), we will pay you at maturity an amount in cash per Note equal to $1,000 plus the Contingent Coupon and any Unpaid Contingent Coupons otherwise due.
If the Notes are not called and the Final Underlying Value of the Least Performing Underlying is less than its Downside Threshold, we will deliver to you at maturity a number of shares of the Least Performing Underlying per Note equal to its Share Delivery Amount. Fractional shares of the Least Performing Underlying will be paid in cash with a value equal to the number of fractional shares times its Final Underlying Value.
In this scenario, you will receive shares of the Least Performing Underlying that will likely be worth significantly less than the principal amount of the Notes and may have a value equal to $0.
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Investing in the Notes involves significant risks. You will not receive a coupon for any Coupon Observation Date on which any Underlying closes below its Coupon Barrier. The Notes will not be automatically called if any Underlying closes below its Initial Underlying Value on a monthly Call Observation Date. You will likely lose a significant portion or all of your principal amount if the Notes are not called and the Final Underlying Value of the Least Performing Underlying is less than its Downside Threshold. The contingent repayment of principal applies only at maturity. Generally, the higher the Contingent Coupon Rate on a Note, the greater the risk of loss. Any payment on the Notes, including any repayment of principal, is subject to our creditworthiness. If we default on our payment obligations, you may not receive any amounts owed to you under the Notes and you could lose your entire investment.
1 Terms used in this pricing supplement, but not defined herein, shall have the meanings ascribed to them in the accompanying product supplement.
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| Coupon Observation Dates and Coupon Payment Dates* |
| Coupon Observation Dates | Coupon Payment Dates |
| December 11, 2025** | December 15, 2025 |
| January 12, 2026 | January 14, 2026 |
| February 11, 2026 | February 13, 2026 |
| March 11, 2026 | March 13, 2026 |
| April 13, 2026 | April 15, 2026 |
| May 11, 2026 | May 13, 2026 |
| June 11, 2026 | June 15, 2026 |
| July 13, 2026 | July 15, 2026 |
| August 11, 2026 | August 13, 2026 |
| September 11, 2026 | September 15, 2026 |
| October 12, 2026 | October 14, 2026 |
| November 11, 2026 | November 13, 2026 |
| December 11, 2026 | December 16, 2026 |
* Subject to postponement. See “General Terms of the Notes—Postponement of a Determination Date” and “General Terms of the Notes—Postponement of a Payment Date” in the accompanying product supplement.
** Each Coupon Observation Date (other than the Final Valuation Date), starting from the first Coupon Observation Date, which is December 11, 2025, is a Call Observation Date. Thus, the first possible Call Settlement Date will be December 15, 2025.
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| Key Risks |
An investment in the Notes involves significant risks. We urge you to consult your investment, legal, tax, accounting and other advisers before you invest in the Notes. Some of the risks that apply to an investment in the Notes are summarized below, but we urge you to read also the “Risk Factors” sections of the accompanying prospectus, prospectus supplement and product supplement. You should not purchase the Notes unless you understand and can bear the risks of investing in the Notes.
Risks Relating to the Terms and Structure of the Notes
| ¨ | Your Investment in the Notes May Result in a Loss of Principal — The Notes differ from ordinary debt securities in that we are not necessarily obligated to repay the full principal amount of the Notes at maturity. If the Notes are not called and the Final Underlying Value of the Least Performing Underlying is less than its Downside Threshold, we will deliver to you shares of the Least Performing Underlying that will likely be worth significantly less than the principal amount of the Notes and may have no value at all. If you receive shares of the Least Performing Underlying, you will be exposed to any further decrease in the value of that Underlying from the Final Valuation Date to the Maturity Date. Accordingly, you could lose a significant portion or all of the principal amount of the Notes. |
| ¨ | Payments on the Notes Are Subject to Our Credit Risk, and Market Perceptions about Our Creditworthiness May Adversely Affect the Market Value of the Notes — The Notes are our senior unsecured debt securities, and your receipt of any amounts due on the Notes is dependent upon our ability to pay our obligations as they come due. If we were to default on our payment obligations, you may not receive any amounts owed to you under the Notes and you could lose your entire investment. In addition, any negative changes in market perceptions about our creditworthiness may adversely affect the market value of the Notes. |
| ¨ | The Contingent Repayment of Principal Applies Only If You Hold the Notes to Maturity — The contingent repayment of principal applies only at maturity. If you are able to sell your Notes in the secondary market prior to maturity, you may have to sell them at a loss even if the value of each Underlying is above its Downside Threshold at the time of sale. |
| ¨ | You May Not Receive Any Contingent Coupons — We will not necessarily make periodic Contingent Coupon payments on the Notes. If the closing value of any Underlying on a Coupon Observation Date is less than its Coupon Barrier, we will not pay you the Contingent Coupon applicable to that Coupon Observation Date or any Unpaid Contingent Coupons on the corresponding Coupon Payment Date. If a Contingent Coupon is not paid on any Coupon Payment Date because the closing value of at least one Underlying is less than its Coupon Barrier on the related Coupon Observation Date, that Contingent Coupon will be paid as an Unpaid Contingent Coupon on a later Coupon Payment Date only if the closing value of each Underlying on the Coupon Observation Date related to that later Coupon Payment Date is greater than or equal to its Coupon Barrier. You will not receive any Unpaid Contingent Coupons if the closing value of at least one Underlying on each subsequent Coupon Observation Date is less than its Coupon Barrier. If the closing value of any Underlying is less than its Coupon Barrier on each of the Coupon Observation Dates, 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 greater risk of principal loss on your Notes. Accordingly, if we do not pay the Contingent Coupon on the Maturity Date, you will incur a loss of principal, because the Final Underlying Value of the Least Performing Underlying will be less than its Downside Threshold. |
| ¨ | You Will Not Participate in Any Appreciation of the Underlyings, and Any Potential Return on the Notes Is Limited — The return on the Notes is limited to the pre-specified Contingent Coupon Rate, regardless of the appreciation of any Underlying. As a result, the return on an investment in the Notes could be less than the return on a direct investment in the Underlyings. In addition, the total return on the Notes will vary based on the number of Coupon Observation Dates on which the Contingent Coupon becomes payable prior to maturity or an automatic call. Further, if the Notes are called due to the automatic call feature, you will not receive any Contingent Coupons or any other payment in respect of any Coupon Observation Dates after the applicable Call Settlement Date. Since the Notes could be called as early as the first Coupon Observation Date, the total return on the Notes could be minimal. On the other hand, if the Notes have not been previously called and if the value of any Underlying is less than its Initial Underlying Value, as the Maturity Date approaches and the remaining number of Coupon Observation Dates decreases, the Notes are less likely to be automatically called, as there will be a shorter period of time remaining for the value of that Underlying to increase to its Initial Underlying Value. If the Notes are not called, you will be subject to the Underlyings’ risk of decline. |
| ¨ | Any Payment on the Notes Will Be Determined Solely by the Performance of the Underlying with the Worst Performance Even If the Other Underlying Performs Better — Any payment on the Notes will be determined solely by the performance of the Underlying with the worst performance. The Notes are not linked to a weighted basket, in which the risk may be mitigated and diversified among each of the basket components. In the case of the Notes, the individual performance of the Underlyings will not be combined, and the adverse performance of one Underlying will not be mitigated by any appreciation of the other Underlying. For the Notes to be automatically called or to receive any |
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Contingent Coupon payment or contingent repayment of principal at maturity from us, each Underlying must close above its Initial Underlying Value, Coupon Barrier or Downside Threshold, as applicable, on the applicable Coupon Observation Date or the Final Valuation Date, as applicable. In addition, if not called prior to maturity, you may incur a loss proportionate to the negative return of the Least Performing Underlying. Accordingly, your investment is subject to the market risk of each Underlying, which results in a higher risk of your not receiving Contingent Coupon payments and incurring a loss at maturity.
| ¨ | Because the Notes Are Linked to the Individual Performance of More than One Underlying, It Is More Likely That You Will Not Receive the Contingent Coupons and That You Will Lose Some or All of Your Initial Investment — The risk that you will not receive the Contingent Coupons and that you will lose some or all of your initial investment in the Notes is greater if you invest in the Notes as opposed to securities that are linked to the performance of a single Underlying if their terms are otherwise substantially similar. With a greater total number of Underlyings, it is more likely that any Underlying will be below its Coupon Barrier or Downside Threshold on a Coupon Observation Date or the Final Valuation Date, and therefore it is more likely that you will not receive the Contingent Coupons and that at maturity you will receive an amount in cash which is worth less than your principal amount. In addition, the performances of a pair of Underlyings may be positively or negatively correlated, or may not be correlated at all. If the Underlyings are not correlated to each other or are negatively correlated, there is a greater potential for one of those Underlyings to close below its Coupon Barrier or Downside Threshold or on the Final Valuation Date, and therefore the risk of missing a Contingent Coupon payment and that you will lose a portion of your principal at maturity. It is impossible to predict what the correlations between the Underlyings will be over the term of the Notes. The Underlyings may not perform similarly over the term of the Notes. Although the correlation of the Underlyings' performance may change over the term of the Notes, the Contingent Coupon Rate is determined, in part, based on the Underlyings' performance calculated using our internal models at the time when the terms of the Notes are determined. A higher Contingent Coupon Rate is generally associated with lower correlation of the Underlyings, which reflects a greater potential for missed Contingent Coupons and for a loss on your investment at maturity. See “Correlation of the Underlyings” below. |
| ¨ | The Contingent Coupon Rate Reflects in Part the Volatility and Correlation of the Underlyings and May Not Be Sufficient to Compensate You for the Risk of Loss At Maturity — Volatility is a measure of the degree of variation in the values of the Underlyings over a period of time. The greater the volatility of the Underlyings, the more likely it is that the value of any Underlying could close below its Downside Threshold on the Final Valuation Date. This risk is generally reflected in a higher Contingent Coupon Rate for the Notes than the interest rate payable on our conventional debt securities with a comparable term. In addition, lower correlation between the Underlyings can also indicate a greater likelihood of an Underlying closing below its Coupon Barrier or Downside Threshold on a Coupon Observation Date or the Final Valuation Date. This greater risk will also be reflected in a higher Contingent Coupon Rate than on a security linked to Underlyings with a greater degree of correlation. Accordingly, a higher Contingent Coupon Rate will generally be indicative of a greater risk of loss. While the Contingent Coupon is a fixed amount, the Underlyings’ volatility and correlation can change significantly over the term of the Notes. The value of any Underlying could fall sharply, which could result in missed Contingent Coupon payments and a significant loss of your principal amount. |
| ¨ | The Notes May Be Called Early and Are Subject to Reinvestment Risk — The Notes will be called automatically if the closing value of each Underlying is greater than or equal to its Initial Underlying Value on any Call Observation Date. In the event that the Notes are called prior to maturity, there is no guarantee that you will be able to reinvest the proceeds from an investment in the Notes at a comparable rate of return for a similar level of risk. To the extent you are able to reinvest your proceeds in an investment comparable to the Notes, you will incur transaction costs and the original issue price for such an investment is likely to include certain built in costs such as dealer discounts and hedging costs. |
| ¨ | 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. |
| ¨ | Any Payment on the Notes Will Be Determined Based on the Closing Values of the Underlyings on the Dates Specified — Any payment on the Notes will be determined based on the closing values of the Underlyings on the dates specified. You will not benefit from any more favorable values of the Underlyings determined at any other time. |
| ¨ | The Notes Will Be Subject to Risks, Including Non-Payment in Full, under Canadian Bank Resolution Powers — Under Canadian bank resolution powers, the Canada Deposit Insurance Corporation (“CDIC”) may, in circumstances where we have ceased, or are about to cease, to be viable, assume temporary control or ownership over us and may be granted broad powers by one or more orders of the Governor in Council (Canada), including the power to sell or dispose of all or a part of our assets, and the power to carry out or cause us to carry out a transaction or a series of transactions the purpose of which is to restructure our business. See “Description of Debt Securities—Canadian Bank Resolution Powers” in the accompanying prospectus for a description of the Canadian bank resolution powers. If the CDIC were to |
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take action under the Canadian bank resolution powers with respect to us, holders of the Notes could be exposed to losses.
| ¨ | The U.S. Federal Income Tax Consequences of an Investment in the Notes Are Uncertain — There is no direct legal authority regarding the proper U.S. federal income tax treatment of the Notes, and significant aspects of the tax treatment of the Notes are uncertain. Moreover, non-U.S. investors should note that persons having withholding responsibility in respect of the Notes may withhold on any coupon paid to a non-U.S. investor, generally at a rate of 30%. We will not pay any additional amounts in respect of such withholding. You should review carefully the section entitled “What Are the Tax Consequences of the Notes?—United States Federal Income Tax Considerations” herein, in combination with the section entitled “United States Federal Income Tax Considerations” in the accompanying product supplement, and consult your tax adviser regarding the U.S. federal income tax consequences of an investment in the Notes. |
Risks Relating to the Initial Estimated Value of the Notes and the Secondary Market for the Notes
| ¨ | 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 intend to make a market for the Notes; however, they are not required to do so and, if they choose to do so, may stop any market-making activities at any time. Because other dealers are not likely to make a secondary market for the Notes, the price at which you may be able to trade your Notes is likely to depend on the price, if any, at which RBCCM or any of our other affiliates is willing to buy the Notes. Even if a secondary market for the Notes develops, it may not provide enough liquidity to allow you to easily trade or sell the Notes. 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. If you sell your Notes before maturity, you may have to do so at a substantial discount from the price that you paid for them, and as a result, you may suffer significant losses. 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 Will Be Less Than the Public Offering Price — The initial estimated value of the Notes will be less than the public offering price of the Notes and does not represent a minimum price at which we, RBCCM or any of our other 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 values of the Underlyings, the internal funding rate we pay to issue securities of this kind (which is lower than the rate at which we borrow funds by issuing conventional fixed rate debt) and the inclusion in the public offering price of the underwriting discount, our estimated profit 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, our estimated profit or the hedging costs relating to the Notes. In addition, any price at which you may sell the Notes is likely to reflect customary bid-ask spreads for similar trades. In addition to bid-ask spreads, the value of the Notes determined for any secondary market price is expected to be based on a secondary market rate rather than the internal funding rate used to price the Notes and determine the initial estimated value. As a result, the secondary market price will be less than if the internal funding rate were used. |
| ¨ | The Initial Estimated Value of the Notes Is Only an Estimate, Calculated as of the Trade Date — 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 internal funding rate (which represents a discount from 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. |
The value of the Notes at any time after the Trade Date will vary based on many factors, including changes in market conditions, and cannot be predicted with accuracy. As a result, the actual value you would receive if you sold the Notes in any secondary market, if any, should be expected to differ materially from the initial estimated value of the Notes.
| ¨ | The Terms of the Notes at Issuance and Their Market Value Prior to Maturity Are Influenced by Many Unpredictable Factors — Many economic and market factors influence the terms of the Notes at issuance and affect their value prior to maturity. These factors are similar in some ways to those that could affect the value of a combination of instruments that might be used to replicate the payments on the Notes, including a combination of a bond with one or more options or other derivative instruments. For the market value of the Notes, we expect that, generally, the values of |
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the Underlyings 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 values of the Underlyings. The value of the Notes will be affected by a number of other factors that may either offset or magnify each other, including:
| ¨ | the values of the Underlyings; |
| ¨ | whether the value of any Underlying is below its Coupon Barrier or its Downside Threshold; |
| ¨ | the actual and expected volatility of the Underlyings; |
| ¨ | the expected correlation of the Underlyings; |
| ¨ | the time remaining to maturity of the Notes; |
| ¨ | the dividend rates on the Underlyings; |
| ¨ | interest and yield rates in the market generally, as well as in the markets of the Underlyings; |
| ¨ | the existence of any Unpaid Contingent Coupons |
| ¨ | a variety of economic, financial, political, regulatory or judicial events; and |
| ¨ | our creditworthiness, including actual or anticipated downgrades in our credit ratings. |
Some or all of these factors influence the terms of the Notes at issuance and affect the price you will receive if you choose to sell the Notes prior to maturity. The impact of any of the factors set forth above may enhance or offset some or all of any change resulting from another factor or factors.
Risks Relating to Conflicts of Interest and Our Trading Activities
| ¨ | Our, Our Affiliates’ and UBS’s Business and Trading Activities May Create Conflicts of Interest — You should make your own independent investigation of the merits of investing in the Notes. Our, our affiliates’ and UBS’s economic interests are potentially adverse to your interests as an investor in the Notes due to our, our affiliates’ and UBS’s business and trading activities, and we, our affiliates and UBS have no obligation to consider your interests in taking any actions that might affect the value of the Notes. Trading by us, UBS and our respective affiliates may adversely affect the values of the Underlyings and the market value of the Notes. See “Risk Factors—Risks Relating to Conflicts of Interest” in the accompanying product supplement. |
| ¨ | RBCCM’s Role as Calculation Agent May Create Conflicts of Interest — As Calculation Agent, our affiliate, RBCCM, will determine any values of the Underlyings and make any other determinations necessary to calculate any payments on the Notes. In making these determinations, the Calculation Agent may be required to make discretionary judgments, including those described under “— Risks Relating to the Underlyings” below. In making these discretionary judgments, the economic interests of the Calculation Agent are potentially adverse to your interests as an investor in the Notes, and any of these determinations may adversely affect any payments on the Notes. The Calculation Agent will have no obligation to consider your interests as an investor in the Notes in making any determinations with respect to the Notes. |
Risks Relating to the Underlyings
| ¨ | An Investment in the Notes Is Subject to Single Stock Risk — The value of each Underlying can rise or fall sharply due to factors specific to that Underlying and its issuer, such as stock price volatility, earnings, financial conditions, corporate, industry and regulatory developments, management changes and decisions and other events, as well as general market factors, such as general stock market volatility and levels, interest rates and economic and political conditions. You, as an investor in the Notes, should make your own investigation into each Underlying issuer and each Underlying for your Notes. For additional information about each Underlying and its issuer, please see “Information about the Underlyings” in this pricing supplement and each Underlying issuer’s SEC filings referred to in that section. We urge you to review financial and other information filed periodically by each Underlying issuer with the SEC. |
| ¨ | You Will Not Have Any Rights to Any Underlying — As an investor in the Notes, you will not have voting rights or rights to receive dividends or other distributions or any other rights with respect to any Underlying. |
| ¨ | Any Payment on the Notes May Be Postponed and Adversely Affected by the Occurrence of a Market Disruption Event — The timing and amount of any payment on the Notes is subject to adjustment upon the occurrence of a market disruption event affecting an Underlying. If a market disruption event persists for a sustained period, the Calculation Agent may make a discretionary determination of the closing value of any affected Underlying. See “General Terms of the Notes—Reference Stocks and Funds—Market Disruption Events,” “General Terms of the Notes—Postponement of a Determination Date” and “General Terms of the Notes—Postponement of a Payment Date” in the accompanying product supplement. |
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| ¨ | Anti-dilution Protection Is Limited, and the Calculation Agent Has Discretion to Make Anti-dilution Adjustments — The Calculation Agent may in its sole discretion make adjustments affecting any amounts payable on the Notes upon the occurrence of certain corporate events (such as stock splits or extraordinary or special dividends) that the Calculation Agent determines have a diluting or concentrative effect on the theoretical value of an Underlying. However, the Calculation Agent might not make adjustments in response to all such events that could affect an Underlying. The occurrence of any such event and any adjustment made by the Calculation Agent (or a determination by the Calculation Agent not to make any adjustment) may adversely affect the market price of, and any amounts payable on, the Notes. See “General Terms of the Notes—Reference Stocks and Funds—Anti-dilution Adjustments” in the accompanying product supplement. |
| ¨ | Reorganization or Other Events Could Adversely Affect the Value of the Notes or Result in the Notes Being Accelerated — Upon the occurrence of certain reorganization or other events affecting an Underlying, the Calculation Agent may make adjustments that result in payments on the Notes being based on the performance of (i) cash, securities of another issuer and/or other property distributed to holders of that Underlying upon the occurrence of that event or (ii) in the case of a reorganization event in which only cash is distributed to holders of that Underlying, a substitute security, if the Calculation Agent elects to select one. Any of these actions could adversely affect the value of the affected Underlying and, consequently, the value of the Notes. Alternatively, the Calculation Agent may accelerate the Maturity Date for a payment determined by the Calculation Agent. Any amount payable upon acceleration could be significantly less than any amount that would be due on the Notes if they were not accelerated. However, if the Calculation Agent elects not to accelerate the Notes, the value of, and any amount payable on, the Notes could be adversely affected, perhaps significantly. See “General Terms of the Notes—Reference Stocks and Funds—Anti-dilution Adjustments—Reorganization Events” in the accompanying product supplement. |
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| Hypothetical Examples |
Hypothetical terms only. Actual terms may vary. See the cover page for actual offering terms.
The examples are hypothetical and provided for illustrative purposes only. You should not take these examples as an indication or assurance of the expected performance of the Underlyings. The numbers appearing in the examples and tables below have been rounded for ease of analysis. The following examples and tables illustrate the payment at maturity or upon an automatic call per Note on a hypothetical offering of the Notes, based on the following hypothetical assumptions:
| Principal Amount: | $1,000 |
| Term: | Approximately thirteen months |
| Contingent Coupon Rate: | 21.30% per annum (or 1.775% per month) |
| Contingent Coupon: | $17.75 per month |
| Coupon Observation Dates: | Monthly |
| Call Observation Dates: | Monthly |
| Hypothetical Initial Underlying Values*: | |
| Underlying A | $100.00 |
| Underlying B | $100.00 |
| Hypothetical Coupon Barriers*: | |
| Underlying A | $68.00 (which is 68% of its hypothetical Initial Underlying Value) |
| Underlying B | $68.00 (which is 68% of its hypothetical Initial Underlying Value) |
| Hypothetical Downside Thresholds*: | |
| Underlying A | $68.00 (which is 68% of its hypothetical Initial Underlying Value) |
| Underlying B | $68.00 (which is 68% of its hypothetical Initial Underlying Value) |
| Hypothetical Share Delivery Amounts*: | |
| Underlying A | 10.0000 shares per Note ($1,000 / hypothetical Initial Underlying Value of $100.00, rounded to four decimal places) |
| Underlying B | 10.0000 shares per Note ($1,000 / hypothetical Initial Underlying Value of $100.00, rounded to four decimal places) |
* Not the actual Initial Underlying Values, Coupon Barriers, Downside Thresholds or Share Delivery Amounts applicable to the Notes. The actual Initial Underlying Value, Coupon Barrier and Downside Threshold of each Underlying are set forth on the cover page of this pricing supplement and the actual Share Delivery Amount for each Underlying is indicated under “Indicative Terms of the Notes” in this pricing supplement.
Example 1 — Notes Are Called on the First Coupon Observation Date.
| Date | Closing Value | Payment (per Note) |
| First Coupon Observation Date | Underlying A: $110.00 (at or above Initial Underlying Value) Underlying B: $105.00 (at or above Initial Underlying Value) |
$1,017.75 |
| Total Payment: | $1,017.75 (1.775% return) |
Since the Notes are called on the first Coupon Observation Date, we will pay you on the Call Settlement Date a total of $1,017.75 per Note, reflecting your principal amount plus the applicable Contingent Coupon, for a total return of 1.775% on the Notes. No further amount will be owed to you under the Notes.
Example 2 — Notes Are NOT Called and the Final Underlying Value of the Least Performing Underlying Is at or above Its Downside Threshold.
| Date | Closing Value | Payment (per Note) |
| First Coupon Observation Date | Underlying A: $95.00 (at or above Coupon Barrier; below Initial Underlying Value) Underlying B: $85.00 (at or above Coupon Barrier; below Initial Underlying Value) |
$17.75 (Contingent Coupon – Not called) |
| Second Coupon Observation Date | Underlying A: $55.00 (below Coupon Barrier) Underlying B: $90.00 (at or above Coupon Barrier; below Initial Underlying Value) |
$0.00 (Not called) |
| Third Coupon Observation Date | Underlying A: $90.00 (at or above Coupon Barrier; below Initial Underlying Value) Underlying B: $50.00 (below Coupon Barrier) |
$0.00 (Not called) |
| Fourth through Twelfth Coupon Observation Dates | Underlying A: Various (below Coupon Barrier) Underlying B: Various (above Initial Underlying Value) |
$0.00 (Not called) |
| Final Valuation Date | Underlying A: $85.00 (at or above Downside Threshold and Coupon Barrier; below Initial Underlying Value) Underlying B: $110.00 (at or above Downside Threshold, Coupon Barrier and Initial Underlying Value) |
$1,213.00 (Payment at Maturity plus Contingent Coupon for Final Valuation Date and Unpaid Contingent Coupons for second through twelfth Observation Dates) |
| Total Payment: | $1,230.75 (23.075% return) |
At maturity, we will pay you a total of $1,213.00 per Note, reflecting your principal amount plus the applicable Contingent Coupon and the Unpaid Contingent Coupons. When added to the Contingent Coupon payment of $17.75 received in respect of the prior Coupon Observation Date on which a Contingent Coupon was paid, we will have paid you a total of $1,230.75 per Note, for a total return of 23.075% on the Notes.
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Example 3 — Notes Are NOT Called and the Final Underlying Value of the Least Performing Underlying Is below Its Downside Threshold.
| Date | Closing Value | Payment (per Note) |
| First Coupon Observation Date | Underlying A: $55.00 (below Coupon Barrier) Underlying B: $120.00 (above Initial Underlying Value) |
$0.00 (Not called) |
| Second Coupon Observation Date | Underlying A: $90.00 (at or above Coupon Barrier; below Initial Underlying Value) Underlying B: $60.00 (below Coupon Barrier) |
$0.00 (Not called) |
| Third Coupon Observation Date | Underlying A: $120.00 (above Initial Underlying Value) Underlying B: $55.00 (below Coupon Barrier) |
$0.00 (Not called) |
| Fourth through Twelfth Coupon Observation Dates | Underlying A: Various (below Coupon Barrier) Underlying B: Various (above Initial Underlying Value) |
$0.00 (Not called) |
| Final Valuation Date | Underlying A: $40.00 (below Downside Threshold and Coupon Barrier) Underlying B: $130.00 (above Initial Underlying Value) |
A number of shares of Underlying A equal to its Shares Delivery Amount, consisting of 10.0000 shares of Underlying A, with a value of $400 (as of the Final Valuation Date) |
| Value of the Total Payment: | $400.00 (-60.00% return) |
Since the Notes are not called and the Final Underlying Value of the Least Performing Underlying is less than its Downside Threshold, we will deliver to you at maturity a number of shares of the Least Performing Underlying equal to its Share Delivery Amount with a value, calculated as of the Final Valuation Date based on its Final Underlying Value, of $400.00 per Note, for a loss of 60.00% on the Notes. No Contingent Coupon payments are payable over the term of the Notes.
The Notes differ from ordinary debt securities in that we are not necessarily obligated to repay the full principal amount of the Notes at maturity. If the Notes are not called and the Final Underlying Value of the Least Performing Underlying is less than its Downside Threshold, we will deliver to you shares of the Least Performing Underlying that will likely be worth significantly less than the principal amount of the Notes and may have no value at all. Accordingly, you may lose a significant portion or all of the principal amount of the Notes.
Your receipt of any amounts due on the Notes is dependent upon our ability to pay our obligations as they come due. If we were to default on our payment obligations, you may not receive any amounts owed to you under the Notes and you could lose your entire investment.
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| What Are the Tax Consequences of the Notes? |
United States Federal Income Tax Considerations
You should review carefully the section in the accompanying product supplement entitled “United States Federal Income Tax Considerations.” The following discussion, when read in combination with that section, constitutes the full opinion of our counsel, Davis Polk & Wardwell LLP, regarding the material U.S. federal income tax consequences of owning and disposing of the Notes.
Generally, this discussion assumes that you purchased the Notes for cash in the original issuance at the stated issue price and does not address other circumstances specific to you, including consequences that may arise due to any other investments relating to the Underlyings. You should consult your tax adviser regarding the effect any such circumstances may have on the U.S. federal income tax consequences of your ownership of a Note.
In the opinion of our counsel, which is based on current market conditions, it is reasonable to treat the Notes for U.S. federal income tax purposes as prepaid financial contracts with associated coupons, and any coupons as ordinary income, as described in the section entitled “United States Federal Income Tax Considerations—Tax Consequences to U.S. Holders—Notes Treated as Prepaid Financial Contracts with Associated Coupons” in the accompanying product supplement. There is uncertainty regarding this treatment, and the Internal Revenue Service (the “IRS”) or a court might not agree with it. Moreover, because this treatment of the Notes and our counsel’s opinion are based on market conditions as of the date of this preliminary pricing supplement, each is subject to confirmation on the Trade Date. A different tax treatment could be adverse to you.
We do not plan to request a ruling from the IRS regarding the treatment of the Notes. An alternative characterization of the Notes could materially and adversely affect the tax consequences of ownership and disposition of the Notes, including the timing and character of income recognized. In addition, the U.S. Treasury Department and the IRS have requested comments on various issues regarding the U.S. federal income tax treatment of “prepaid forward contracts” and similar financial instruments and have indicated that such transactions may be the subject of future regulations or other guidance. Furthermore, members of Congress have proposed legislative changes to the tax treatment of derivative contracts. Any legislation, Treasury regulations or other guidance promulgated after consideration of these issues could materially and adversely affect the tax consequences of an investment in the Notes, possibly with retroactive effect.
Non-U.S. Holders. The U.S. federal income tax treatment of the coupons is unclear. To the extent that we have withholding responsibility in respect of the Notes, we would expect generally to treat the coupons as subject to U.S. withholding tax. Moreover, you should expect that, if the applicable withholding agent determines that withholding tax should apply, it will be at a rate of 30% (or lower treaty rate). In order to claim an exemption from, or a reduction in, the 30% withholding under an applicable treaty, you may need to comply with certification requirements to establish that you are not a U.S. person and are eligible for such an exemption or reduction under an applicable tax treaty. You should consult your tax adviser regarding the tax treatment of the coupons.
As discussed under “United States Federal Income Tax Considerations—Tax Consequences to Non-U.S. Holders—Dividend Equivalents under Section 871(m) of the Code” in the accompanying product supplement, Section 871(m) of the Internal Revenue Code and Treasury regulations promulgated thereunder (“Section 871(m)”) generally impose a 30% withholding tax on dividend equivalents paid or deemed paid to Non-U.S. Holders with respect to certain financial instruments linked to U.S. equities or indices that include U.S. equities. The Treasury regulations, as modified by an IRS notice, exempt financial instruments issued prior to January 1, 2027 that do not have a “delta” of one. Based on certain determinations made by us, we expect that Section 871(m) will not apply to the Notes with regard to Non-U.S. Holders. Our determination is not binding on the IRS, and the IRS may disagree with this determination. If necessary, further information regarding the potential application of Section 871(m) will be provided in the final pricing supplement for the Notes.
We will not be required to pay any additional amounts with respect to U.S. federal withholding taxes.
You should consult your tax adviser regarding the U.S. federal income tax consequences of an investment in the Notes, including possible alternative treatments, as well as tax consequences arising under the laws of any state, local or non-U.S. taxing jurisdiction.
Canadian Federal Income Tax Consequences
For a discussion of the material Canadian federal income tax consequences relating to an investment in the Notes, please see the section entitled “Supplemental Discussion of Canadian Tax Consequences” in the accompanying product supplement, which you should carefully review prior to investing in the Notes.
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| Information about the Underlyings |
Each Underlying is registered under the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Companies with securities registered under the Exchange Act are required to file financial and other information specified by the SEC periodically. Information provided to or filed with the SEC by the issuer of each Underlying can be located on a website maintained by the SEC at https://www.sec.gov by reference to that issuer’s SEC file number provided below. Information from outside sources is not incorporated by reference in, and should not be considered part of, this pricing supplement. We have not independently verified the accuracy or completeness of the information contained in outside sources.
| Underlying | Exchange Ticker | Exchange | SEC File Number |
| AMZN Underlying | AMZN | Nasdaq Stock Market | 000-22513 |
| TGT Underlying | TGT | New York Stock Exchange | 001-06049 |
According to publicly available information:
| · | Amazon.com, Inc. serves consumers through its online and physical stores; manufactures and sells electronic devices; develops and produces media content; offers subscription services; offers programs that enable sellers to sell their products in its stores and to fulfill orders using its services; offers developers and enterprises a set of technology services, including compute, storage, database, analytics and machine learning and other services; offers programs that allow authors, independent publishers, musicians, filmmakers, Twitch streamers, skill and app developers and others to publish and sell content; and provides advertising services to sellers, vendors, publishers, authors and others, through programs such as sponsored ads, display and video advertising. |
| · | Target Corporation sells an assortment of general merchandise and food through its stores and digital channels. |
Historical Information
The following graphs set forth historical closing values of the Underlyings for the period from January 1, 2015 to November 10, 2025. Each solid line represents the Coupon Barrier and Downside Threshold of the relevant Underlying. We obtained the information in the graphs from Bloomberg Financial Markets, without independent investigation. The historical performance of the Underlyings should not be taken as an indication of their future performance. We cannot give you assurance that the performance of the Underlyings will result in the return of all of your initial investment.
Common Stock of Amazon.com, Inc.
PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS.
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Common Stock of Target Corporation
PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS.
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| Correlation of the Underlyings |
The graph below illustrates the daily performance of the Underlyings from January 1, 2015 through November 10, 2025. For comparison purposes, each Underlying has been normalized to have a closing value of $100.00 on January 1, 2015 by dividing the closing value of that Underlying on each day by the closing value of that Underlying on January 1, 2015 and multiplying by $100.00. We obtained the closing values used to determine the normalized closing values set forth below from Bloomberg L.P., without independent verification.
― AMZN Underlying ― TGT Underlying
PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS.
The correlation of a pair of Underlyings represents a statistical measurement of the degree to which the returns of those Underlyings were similar to each other over a given period in terms of timing and direction (i.e., positive or negative). The closer the relationship of the daily returns of the Underlyings over a given period, the more positively correlated those Underlyings are. The graph above illustrates the historical performance of the Underlyings relative to one another over the time period shown and provides an indication of how close the relative performance of the daily returns of one Underlying has historically been to the other. However, the graph does not provide a precise measurement of the correlation of the Underlyings. Moreover, any historical correlation of the Underlyings is not indicative of the degree of correlation of the Underlyings, if any, that will be experienced over the term of the Notes. The lower (or more negative) the correlation between two Underlyings, the less likely it is that those Underlyings will move in the same direction at the same time and, therefore, the greater the potential for one of those Underlyings to close below its Coupon Barrier or Downside Threshold on any Coupon Observation Date or the Final Valuation Date, respectively. This is because the less positively correlated a pair of Underlyings are, the greater the likelihood that at least one of those Underlyings will decrease in value. This results in a greater potential for a Contingent Coupon not to be paid during the term of the Notes and for a loss of principal at maturity. However, even if the two Underlyings have a higher positive correlation, one or both of those Underlyings might close below its Coupon Barrier or Downside Threshold on a Coupon Observation Date or the Final Valuation Date, respectively, as both of those Underlyings may decrease in value together.
The lower the correlation between two Underlyings, the greater the potential for one of those Underlyings to close below its Coupon Barrier or its Downside Threshold on any Coupon Observation Date or the Final Valuation Date, respectively. Therefore, the greater the number of Underlyings, the greater the potential for missed Contingent Coupons and for a loss of principal at maturity. We determine the Contingent Coupons for the Notes based, in part, on the correlation among the Underlyings, calculated using internal models at the time the terms of the Notes are set. As discussed above, increased risk resulting from lower correlation or from a greater number of Underlyings will be reflected in a higher Contingent Coupon than would be payable on securities linked to fewer Underlyings or that have a higher degree of correlation. Accordingly, a higher Contingent Coupon Rate will generally be indicative of a greater risk of loss.
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| Supplemental Plan of Distribution (Conflicts of Interest) |
We have agreed to indemnify UBS and RBCCM against liabilities under the Securities Act of 1933, as amended, or to contribute payments that UBS and RBCCM may be required to make relating to these liabilities as described in the prospectus supplement and the prospectus. We have agreed that UBS may sell all or a part of the Notes that it will purchase from us to investors or to its affiliates at the price to public listed on the cover page of this pricing supplement. UBS may allow a concession not in excess of the underwriting discount set forth on the cover page of this pricing supplement to its affiliates for distribution of the Notes.
We or our affiliates may enter into swap agreements or related hedge transactions with one of our other affiliates or unaffiliated counterparties in connection with the sale of the Notes and RBCCM and/or an affiliate may earn additional income as a result of payments pursuant to the swap or related hedge transactions. See “Use of Proceeds and Hedging” in the accompanying product supplement.
The value of the Notes shown on your account statement may be based on RBCCM’s estimate of the value of the Notes if RBCCM or another of our affiliates were to make a market in the Notes (which it is not obligated to do). That estimate will be based on the price that RBCCM may pay for the Notes in light of then-prevailing market conditions, our creditworthiness and transaction costs. For a period of approximately six months after the Settlement Date, the value of the Notes that may be shown on your account statement may be higher than RBCCM’s estimated value of the Notes at that time. This is because the estimated value of the Notes will not include the underwriting discount or our hedging costs and profits; however, the value of the Notes shown on your account statement during that period may initially be a higher amount, reflecting the addition of the underwriting discount and our estimated costs and profits from hedging the Notes. This excess is expected to decrease over time until the end of this period. After this period, if RBCCM repurchases your Notes, it expects to do so at prices that reflect their estimated value. This period may be reduced at RBCCM’s discretion based on a variety of factors, including but not limited to, the amount of the Notes that we repurchase and our negotiated arrangements from time to time with UBS.
RBCCM or another of its affiliates or agents may use this pricing supplement in the initial sale of the Notes. In addition, RBCCM or another of our affiliates may use this pricing supplement in a market-making transaction in the Notes after their initial sale. Unless we or our agent informs the purchaser otherwise in the confirmation of sale, this pricing supplement is being used in a market-making transaction.
For additional information about the settlement cycle of the Notes, see “Plan of Distribution” in the accompanying prospectus. For additional information as to the relationship between us and RBCCM, see the section “Plan of Distribution—Conflicts of Interest” in the accompanying prospectus.
| Structuring the Notes |
The Notes are our debt securities. As is the case for all of our debt securities, including our structured notes, the economic terms of the Notes reflect our actual or perceived creditworthiness. In addition, because structured notes result in increased operational, funding and liability management costs to us, we typically borrow the funds under structured notes at a rate that is lower than the rate that we might pay for a conventional fixed or floating rate debt security of comparable maturity. The lower internal funding rate, the underwriting discount and the hedging-related costs relating to the Notes reduce the economic terms of the Notes to you and result in the initial estimated value for the Notes being less than their public offering price. Unlike the initial estimated value, any value of the Notes determined for purposes of a secondary market transaction may be based on a secondary market rate, which may result in a lower value for the Notes than if our initial internal funding rate were used.
In order to satisfy our payment obligations under the Notes, we may choose to enter into certain hedging arrangements (which may include call options, put options or other derivatives) with RBCCM and/or one of our other subsidiaries. The terms of these hedging arrangements take into account a number of factors, including our creditworthiness, interest rate movements, volatility and the tenor of the Notes. The economic terms of the Notes and the initial estimated value depend in part on the terms of these hedging arrangements.
See “Key Risks—Risks Relating to the Initial Estimated Value of the Notes and the Secondary Market for the Notes—The Initial Estimated Value of the Notes Will Be Less Than the Public Offering Price” above.
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FAQ
What is the coupon rate on RBC (RBMCF) Trigger Autocallable Notes?
When can these RBC Notes be called and what do investors receive?
What are the Initial Values, Barriers, and Thresholds for AMZN and TGT?
What happens at maturity if the Least Performing is below its threshold?
What are the key dates for these RBC Notes?
Are these RBC Notes listed on an exchange and what are the fees?
What is the initial estimated value of the RBC Notes?
