[424B2] Royal Bank of Canada Prospectus Supplement
Penguin Solutions, Inc. (ticker: SGH) filed Post-Effective Amendment No. 1 to sixteen previously effective Form S-8 registration statements following completion of its court-approved redomiciliation from the Cayman Islands to the State of Delaware on 30 June 2025. Acting under Rule 414 of the Securities Act, the Delaware successor issuer formally adopts each S-8 as its own, thereby maintaining registration of shares issuable under three employee equity plans: the Amended & Restated 2017 Stock Incentive Plan, 2018 Employee Stock Purchase Plan and 2021 Inducement Plan.
The amendment does not register additional securities; instead it provides that all outstanding awards will settle in Delaware common stock on a one-for-one basis with the former Cayman ordinary shares, preserving both share count and economic rights for plan participants and shareholders. The company continues to qualify as a large accelerated filer and incorporates by reference all historical reports filed by the Cayman entity, plus future Exchange Act filings, ensuring uninterrupted periodic reporting.
The filing also supplies updated governance documents (certificate of incorporation, bylaws) and customary exhibits, restates indemnification provisions for directors and officers under Delaware law, and confirms that directors and officers are covered by D&O insurance. Overall, the amendment is primarily administrative, aligning the company’s equity plans and SEC filings with its new U.S. domicile while leaving capital structure and operating results unchanged.
Penguin Solutions, Inc. (simbolo: SGH) ha presentato la Post-Effective Amendment n. 1 a sedici precedenti moduli di registrazione Form S-8 già efficaci, a seguito del completamento della sua redomiciliazione dalle Isole Cayman allo Stato del Delaware il 30 giugno 2025, approvata dal tribunale. Agendo ai sensi della Regola 414 del Securities Act, il soggetto successore del Delaware adotta formalmente ogni S-8 come proprio, mantenendo così la registrazione delle azioni emettibili nell’ambito di tre piani azionari per dipendenti: il Piano Incentivi Azionari 2017 modificato e integrato, il Piano di Acquisto Azionario per Dipendenti 2018 e il Piano di Incentivazione 2021.
L’emendamento non registra titoli aggiuntivi; invece stabilisce che tutte le assegnazioni in essere saranno regolate in azioni ordinarie del Delaware con un rapporto uno a uno rispetto alle precedenti azioni ordinarie delle Cayman, preservando sia il numero di azioni sia i diritti economici per i partecipanti ai piani e gli azionisti. L’azienda continua a qualificarsi come large accelerated filer e incorpora per riferimento tutti i report storici presentati dall’entità Cayman, oltre alle future comunicazioni ai sensi dell’Exchange Act, garantendo una rendicontazione periodica ininterrotta.
La presentazione include anche documenti di governance aggiornati (atto costitutivo, statuto) e gli allegati consueti, riformula le disposizioni di indennizzo per amministratori e dirigenti secondo la legge del Delaware e conferma che amministratori e dirigenti sono coperti da polizza D&O. In generale, l’emendamento è principalmente di natura amministrativa, allineando i piani azionari e le comunicazioni SEC alla nuova sede negli USA senza modificare la struttura del capitale o i risultati operativi.
Penguin Solutions, Inc. (símbolo: SGH) presentó la Enmienda Post-Effective N.º 1 a dieciséis declaraciones de registro Formulario S-8 previamente vigentes tras completar su redomiciliación de las Islas Caimán al Estado de Delaware el 30 de junio de 2025, aprobada por la corte. Actuando bajo la Regla 414 del Securities Act, el emisor sucesor en Delaware adopta formalmente cada Formulario S-8 como propio, manteniendo así la inscripción de acciones emitibles bajo tres planes de acciones para empleados: el Plan de Incentivos en Acciones 2017 enmendado y restablecido, el Plan de Compra de Acciones para Empleados 2018 y el Plan de Incentivos 2021.
La enmienda no registra valores adicionales; en cambio, establece que todas las adjudicaciones pendientes se liquidarán en acciones ordinarias de Delaware en una proporción uno a uno con las acciones ordinarias anteriores de las Islas Caimán, preservando tanto el número de acciones como los derechos económicos para los participantes del plan y los accionistas. La compañía continúa calificando como large accelerated filer e incorpora por referencia todos los informes históricos presentados por la entidad de las Islas Caimán, así como los futuros informes bajo la Exchange Act, asegurando una presentación periódica ininterrumpida.
La presentación también incluye documentos de gobernanza actualizados (certificado de incorporación, estatutos) y los anexos habituales, reitera las disposiciones de indemnización para directores y ejecutivos bajo la ley de Delaware y confirma que los directores y ejecutivos están cubiertos por un seguro D&O. En general, la enmienda es principalmente administrativa, alineando los planes de acciones y los reportes ante la SEC con su nueva sede en EE.UU. sin cambiar la estructura de capital ni los resultados operativos.
Penguin Solutions, Inc. (티커: SGH)는 2025년 6월 30일 법원 승인 하에 케이맨 제도에서 델라웨어 주로의 본사 이전을 완료한 후, 이전에 효력이 있었던 16개의 Form S-8 등록서류에 대한 Post-Effective Amendment No. 1을 제출했습니다. 증권법 규칙 414에 따라 델라웨어 후속 발행사는 각 S-8을 자사 것으로 공식 채택하여, 세 가지 직원 주식 계획인 개정 및 재확인된 2017년 주식 인센티브 계획, 2018년 직원 주식 구매 계획, 2021년 유인 계획 하에 발행 가능한 주식 등록을 유지합니다.
이번 수정안은 추가 증권 등록을 하지 않으며, 기존 케이맨 보통주와 1대1 비율로 델라웨어 보통주로 모든 미지급 보상이 정산됨을 명시하여, 주식 수와 경제적 권리를 계획 참가자 및 주주에게 그대로 보존합니다. 회사는 계속해서 대형 가속 신고자(large accelerated filer) 자격을 유지하며, 케이맨 법인 시절 제출한 모든 과거 보고서와 향후 Exchange Act 관련 서류를 참조로 포함하여 연속적인 정기 보고를 보장합니다.
이번 제출에는 업데이트된 거버넌스 문서(설립 증명서, 내규)와 일반적인 부속 서류가 포함되며, 델라웨어 법에 따른 이사 및 임원의 면책 조항을 재진술하고, 이사 및 임원이 D&O 보험에 가입되어 있음을 확인합니다. 전반적으로 이번 수정안은 주로 행정적 성격으로, 회사의 주식 계획과 SEC 제출 서류를 새로운 미국 소재지에 맞추면서 자본 구조와 운영 실적에는 변동이 없습니다.
Penguin Solutions, Inc. (symbole : SGH) a déposé l’amendement post-effective n° 1 à seize déclarations d’enregistrement Formulaire S-8 précédemment effectives, suite à l’achèvement de sa redomiciliation des îles Caïmans vers l’État du Delaware le 30 juin 2025, approuvé par le tribunal. Agissant en vertu de la règle 414 du Securities Act, l’émetteur successeur du Delaware adopte formellement chaque formulaire S-8 comme le sien, maintenant ainsi l’enregistrement des actions pouvant être émises dans le cadre de trois plans d’actions pour employés : le Plan d’Incitations en Actions 2017 modifié et révisé, le Plan d’Achat d’Actions des Employés 2018 et le Plan d’Incitation 2021.
L’amendement n’enregistre pas de titres supplémentaires ; il stipule plutôt que toutes les attributions en cours seront réglées en actions ordinaires du Delaware à raison d’une action pour une action avec les anciennes actions ordinaires des Caïmans, préservant ainsi à la fois le nombre d’actions et les droits économiques des participants au plan et des actionnaires. La société continue de se qualifier comme un large accelerated filer et intègre par renvoi tous les rapports historiques déposés par l’entité des Caïmans, ainsi que les futurs dépôts au titre de l’Exchange Act, assurant une communication périodique ininterrompue.
Le dépôt fournit également des documents de gouvernance mis à jour (certificat de constitution, règlements), des annexes habituelles, reformule les dispositions d’indemnisation des administrateurs et dirigeants selon la loi du Delaware, et confirme que les administrateurs et dirigeants sont couverts par une assurance D&O. Globalement, l’amendement est principalement administratif, alignant les plans d’actions et les dépôts SEC avec son nouveau domicile américain tout en laissant la structure du capital et les résultats opérationnels inchangés.
Penguin Solutions, Inc. (Ticker: SGH) hat nach Abschluss seiner gerichtlich genehmigten Umfirmierung von den Kaimaninseln in den Bundesstaat Delaware am 30. Juni 2025 eine Post-Effective Amendment Nr. 1 zu sechzehn zuvor wirksamen Form S-8-Registrierungserklärungen eingereicht. Nach Regel 414 des Securities Act übernimmt der Nachfolgeemittent in Delaware formell jede S-8 als eigene und erhält damit die Registrierung der unter drei Mitarbeiterbeteiligungsplänen auszugebenden Aktien: dem geänderten und neu gefassten 2017 Stock Incentive Plan, dem Employee Stock Purchase Plan 2018 und dem Inducement Plan 2021.
Die Änderung registriert keine zusätzlichen Wertpapiere; vielmehr wird festgelegt, dass alle ausstehenden Zuteilungen im Verhältnis eins zu eins in Delaware Stammaktien abgewickelt werden, entsprechend den früheren Kaiman- Stammaktien, wodurch sowohl die Aktienanzahl als auch die wirtschaftlichen Rechte der Planteilnehmer und Aktionäre erhalten bleiben. Das Unternehmen qualifiziert sich weiterhin als large accelerated filer und bezieht alle historischen Berichte der Kaiman- Gesellschaft sowie künftige Meldungen nach dem Exchange Act durch Verweis ein, um eine ununterbrochene periodische Berichterstattung sicherzustellen.
Die Einreichung enthält zudem aktualisierte Governance-Dokumente (Gründungsurkunde, Satzung) und übliche Anlagen, stellt die Entschädigungsregelungen für Direktoren und leitende Angestellte nach Delaware-Recht klar und bestätigt, dass Direktoren und leitende Angestellte durch eine D&O-Versicherung abgesichert sind. Insgesamt ist die Änderung überwiegend administrativer Natur und bringt die Aktienpläne und SEC-Einreichungen mit dem neuen US-Sitz in Einklang, ohne die Kapitalstruktur oder die Betriebsergebnisse zu verändern.
- Redomiciliation completed on 30 June 2025, with seamless transition to Delaware corporate structure.
- One-for-one share exchange preserves shareholder interests and employee equity awards without dilution.
- None.
Insights
Administrative S-8 amendment reflects Delaware redomiciliation; neutral to valuation and dilution.
This Post-Effective Amendment simply designates Penguin Solutions, Inc. as successor issuer to the former Cayman entity and assumes sixteen pre-existing Form S-8 registrations. No incremental shares are registered and all equity awards convert one-for-one into Delaware common stock, preserving shareholder and employee economics. Large accelerated filer status, existing SEC reporting cadence, and indemnification protections are retained. Because the action is procedural and contains no financial results or capital-raising elements, the immediate investment impact is neutral, although Delaware domicile may streamline governance and investor perception going forward.
Penguin Solutions, Inc. (simbolo: SGH) ha presentato la Post-Effective Amendment n. 1 a sedici precedenti moduli di registrazione Form S-8 già efficaci, a seguito del completamento della sua redomiciliazione dalle Isole Cayman allo Stato del Delaware il 30 giugno 2025, approvata dal tribunale. Agendo ai sensi della Regola 414 del Securities Act, il soggetto successore del Delaware adotta formalmente ogni S-8 come proprio, mantenendo così la registrazione delle azioni emettibili nell’ambito di tre piani azionari per dipendenti: il Piano Incentivi Azionari 2017 modificato e integrato, il Piano di Acquisto Azionario per Dipendenti 2018 e il Piano di Incentivazione 2021.
L’emendamento non registra titoli aggiuntivi; invece stabilisce che tutte le assegnazioni in essere saranno regolate in azioni ordinarie del Delaware con un rapporto uno a uno rispetto alle precedenti azioni ordinarie delle Cayman, preservando sia il numero di azioni sia i diritti economici per i partecipanti ai piani e gli azionisti. L’azienda continua a qualificarsi come large accelerated filer e incorpora per riferimento tutti i report storici presentati dall’entità Cayman, oltre alle future comunicazioni ai sensi dell’Exchange Act, garantendo una rendicontazione periodica ininterrotta.
La presentazione include anche documenti di governance aggiornati (atto costitutivo, statuto) e gli allegati consueti, riformula le disposizioni di indennizzo per amministratori e dirigenti secondo la legge del Delaware e conferma che amministratori e dirigenti sono coperti da polizza D&O. In generale, l’emendamento è principalmente di natura amministrativa, allineando i piani azionari e le comunicazioni SEC alla nuova sede negli USA senza modificare la struttura del capitale o i risultati operativi.
Penguin Solutions, Inc. (símbolo: SGH) presentó la Enmienda Post-Effective N.º 1 a dieciséis declaraciones de registro Formulario S-8 previamente vigentes tras completar su redomiciliación de las Islas Caimán al Estado de Delaware el 30 de junio de 2025, aprobada por la corte. Actuando bajo la Regla 414 del Securities Act, el emisor sucesor en Delaware adopta formalmente cada Formulario S-8 como propio, manteniendo así la inscripción de acciones emitibles bajo tres planes de acciones para empleados: el Plan de Incentivos en Acciones 2017 enmendado y restablecido, el Plan de Compra de Acciones para Empleados 2018 y el Plan de Incentivos 2021.
La enmienda no registra valores adicionales; en cambio, establece que todas las adjudicaciones pendientes se liquidarán en acciones ordinarias de Delaware en una proporción uno a uno con las acciones ordinarias anteriores de las Islas Caimán, preservando tanto el número de acciones como los derechos económicos para los participantes del plan y los accionistas. La compañía continúa calificando como large accelerated filer e incorpora por referencia todos los informes históricos presentados por la entidad de las Islas Caimán, así como los futuros informes bajo la Exchange Act, asegurando una presentación periódica ininterrumpida.
La presentación también incluye documentos de gobernanza actualizados (certificado de incorporación, estatutos) y los anexos habituales, reitera las disposiciones de indemnización para directores y ejecutivos bajo la ley de Delaware y confirma que los directores y ejecutivos están cubiertos por un seguro D&O. En general, la enmienda es principalmente administrativa, alineando los planes de acciones y los reportes ante la SEC con su nueva sede en EE.UU. sin cambiar la estructura de capital ni los resultados operativos.
Penguin Solutions, Inc. (티커: SGH)는 2025년 6월 30일 법원 승인 하에 케이맨 제도에서 델라웨어 주로의 본사 이전을 완료한 후, 이전에 효력이 있었던 16개의 Form S-8 등록서류에 대한 Post-Effective Amendment No. 1을 제출했습니다. 증권법 규칙 414에 따라 델라웨어 후속 발행사는 각 S-8을 자사 것으로 공식 채택하여, 세 가지 직원 주식 계획인 개정 및 재확인된 2017년 주식 인센티브 계획, 2018년 직원 주식 구매 계획, 2021년 유인 계획 하에 발행 가능한 주식 등록을 유지합니다.
이번 수정안은 추가 증권 등록을 하지 않으며, 기존 케이맨 보통주와 1대1 비율로 델라웨어 보통주로 모든 미지급 보상이 정산됨을 명시하여, 주식 수와 경제적 권리를 계획 참가자 및 주주에게 그대로 보존합니다. 회사는 계속해서 대형 가속 신고자(large accelerated filer) 자격을 유지하며, 케이맨 법인 시절 제출한 모든 과거 보고서와 향후 Exchange Act 관련 서류를 참조로 포함하여 연속적인 정기 보고를 보장합니다.
이번 제출에는 업데이트된 거버넌스 문서(설립 증명서, 내규)와 일반적인 부속 서류가 포함되며, 델라웨어 법에 따른 이사 및 임원의 면책 조항을 재진술하고, 이사 및 임원이 D&O 보험에 가입되어 있음을 확인합니다. 전반적으로 이번 수정안은 주로 행정적 성격으로, 회사의 주식 계획과 SEC 제출 서류를 새로운 미국 소재지에 맞추면서 자본 구조와 운영 실적에는 변동이 없습니다.
Penguin Solutions, Inc. (symbole : SGH) a déposé l’amendement post-effective n° 1 à seize déclarations d’enregistrement Formulaire S-8 précédemment effectives, suite à l’achèvement de sa redomiciliation des îles Caïmans vers l’État du Delaware le 30 juin 2025, approuvé par le tribunal. Agissant en vertu de la règle 414 du Securities Act, l’émetteur successeur du Delaware adopte formellement chaque formulaire S-8 comme le sien, maintenant ainsi l’enregistrement des actions pouvant être émises dans le cadre de trois plans d’actions pour employés : le Plan d’Incitations en Actions 2017 modifié et révisé, le Plan d’Achat d’Actions des Employés 2018 et le Plan d’Incitation 2021.
L’amendement n’enregistre pas de titres supplémentaires ; il stipule plutôt que toutes les attributions en cours seront réglées en actions ordinaires du Delaware à raison d’une action pour une action avec les anciennes actions ordinaires des Caïmans, préservant ainsi à la fois le nombre d’actions et les droits économiques des participants au plan et des actionnaires. La société continue de se qualifier comme un large accelerated filer et intègre par renvoi tous les rapports historiques déposés par l’entité des Caïmans, ainsi que les futurs dépôts au titre de l’Exchange Act, assurant une communication périodique ininterrompue.
Le dépôt fournit également des documents de gouvernance mis à jour (certificat de constitution, règlements), des annexes habituelles, reformule les dispositions d’indemnisation des administrateurs et dirigeants selon la loi du Delaware, et confirme que les administrateurs et dirigeants sont couverts par une assurance D&O. Globalement, l’amendement est principalement administratif, alignant les plans d’actions et les dépôts SEC avec son nouveau domicile américain tout en laissant la structure du capital et les résultats opérationnels inchangés.
Penguin Solutions, Inc. (Ticker: SGH) hat nach Abschluss seiner gerichtlich genehmigten Umfirmierung von den Kaimaninseln in den Bundesstaat Delaware am 30. Juni 2025 eine Post-Effective Amendment Nr. 1 zu sechzehn zuvor wirksamen Form S-8-Registrierungserklärungen eingereicht. Nach Regel 414 des Securities Act übernimmt der Nachfolgeemittent in Delaware formell jede S-8 als eigene und erhält damit die Registrierung der unter drei Mitarbeiterbeteiligungsplänen auszugebenden Aktien: dem geänderten und neu gefassten 2017 Stock Incentive Plan, dem Employee Stock Purchase Plan 2018 und dem Inducement Plan 2021.
Die Änderung registriert keine zusätzlichen Wertpapiere; vielmehr wird festgelegt, dass alle ausstehenden Zuteilungen im Verhältnis eins zu eins in Delaware Stammaktien abgewickelt werden, entsprechend den früheren Kaiman- Stammaktien, wodurch sowohl die Aktienanzahl als auch die wirtschaftlichen Rechte der Planteilnehmer und Aktionäre erhalten bleiben. Das Unternehmen qualifiziert sich weiterhin als large accelerated filer und bezieht alle historischen Berichte der Kaiman- Gesellschaft sowie künftige Meldungen nach dem Exchange Act durch Verweis ein, um eine ununterbrochene periodische Berichterstattung sicherzustellen.
Die Einreichung enthält zudem aktualisierte Governance-Dokumente (Gründungsurkunde, Satzung) und übliche Anlagen, stellt die Entschädigungsregelungen für Direktoren und leitende Angestellte nach Delaware-Recht klar und bestätigt, dass Direktoren und leitende Angestellte durch eine D&O-Versicherung abgesichert sind. Insgesamt ist die Änderung überwiegend administrativer Natur und bringt die Aktienpläne und SEC-Einreichungen mit dem neuen US-Sitz in Einklang, ohne die Kapitalstruktur oder die Betriebsergebnisse zu verändern.
 |
Registration Statement No. 333-275898 Filed Pursuant to Rule 424(b)(2)
|
| The information in this preliminary pricing supplement is not complete and may be changed. | |
|
Preliminary Pricing Supplement Subject to Completion: Dated June 30, 2025
Pricing Supplement dated July __, 2025 to the Prospectus dated December 20, 2023, the Prospectus Supplement dated December 20, 2023, the Underlying Supplement No. 1A dated May 16, 2024 and the Product Supplement No. 1A dated May 16, 2024 |
$
Royal Bank of Canada |
Royal Bank of Canada is offering Capped Enhanced Return Buffer Notes (the “Notes”) linked to the performance of the EURO STOXX 50® Index (the “Underlier”).
| · | Capped Enhanced Return Potential — If the Final Underlier Value is greater than the Initial Underlier Value, at maturity, investors will receive a return equal to 200% of the Underlier Return, subject to the Maximum Return of 21% to 23% (to be determined on the Trade Date). |
| · | Contingent Return of Principal at Maturity — If the Final Underlier Value is less than or equal to the Initial Underlier Value, but is greater than or equal to the Buffer Value (85% of the Initial Underlier Value), at maturity, investors will receive the principal amount of their Notes. If the Final Underlier Value is less than the Buffer Value, at maturity, investors will lose 1% of the principal amount of their Notes for each 1% that the Final Underlier Value is less than the Initial Underlier Value in excess of the Buffer Percentage of 15%. |
| · | The Notes do not pay interest. |
| · | Any payments on the Notes are subject to our credit risk. |
| · | The Notes will not be listed on any securities exchange. |
CUSIP: 78017PDG3
Investing in the Notes involves a number of risks. See “Selected Risk Considerations” beginning on page P-6 of this pricing supplement and “Risk Factors” in the accompanying prospectus, prospectus supplement and product 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.
|
Per Note |
Total | |
| Price to public(1) | 100.00% | $ |
| Underwriting discounts and commissions(1) |
2.25% |
$ |
| Proceeds to Royal Bank of Canada | 97.75% | $ |
(1) We or one of our affiliates may pay varying selling concessions of up to $22.50 per $1,000 principal amount of Notes in connection with the distribution of the Notes to other registered broker-dealers. Certain dealers who purchase the Notes for sale to certain fee-based advisory accounts may forgo some or all of their underwriting discount or selling concessions. The public offering price for investors purchasing the Notes in these accounts may be between $977.50 and $1,000.00 per $1,000 principal amount of Notes. In addition, we or one of our affiliates may pay a broker-dealer that is not affiliated with us a referral fee of up to $8.00 per $1,000 principal amount of Notes. 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 $910.00 and $960.00 per $1,000 principal amount of Notes 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.
RBC Capital Markets, LLC
| Capped Enhanced Return Buffer Notes Linked to the EURO STOXX 50® Index |
KEY TERMS
The information in this “Key Terms” section is qualified by any more detailed information set forth in this pricing supplement and in the accompanying prospectus, prospectus supplement, underlying supplement and product supplement.
| Issuer: | Royal Bank of Canada |
| Underwriter: | RBC Capital Markets, LLC (“RBCCM”) |
| Minimum Investment: | $1,000 and minimum denominations of $1,000 in excess thereof |
| Underlier: | The EURO STOXX 50® Index |
| Bloomberg Ticker | Initial Underlier Value(1) | Buffer Value(2) | |
| SX5E |
| (1) The closing value of the Underlier on the Trade Date | |
| (2) 85% of the Initial Underlier Value (rounded to two decimal places) | |
| Trade Date: | July 28, 2025 |
| Issue Date: | July 31, 2025 |
| Valuation Date:* | July 28, 2027 |
| Maturity Date:* | August 2, 2027 |
| Payment at Maturity: |
Investors will receive on the Maturity Date per $1,000 principal amount of Notes: · If the Final Underlier Value is greater than the Initial Underlier Value, an amount equal to: $1,000 + ($1,000 × the lesser of (a) Underlier Return × Participation Rate and (b) Maximum Return) · If the Final Underlier Value is less than or equal to the Initial Underlier Value, but is greater than or equal to the Buffer Value: $1,000 · If the Final Underlier Value is less than the Buffer Value, an amount equal to: $1,000 + [$1,000 × (Underlier Return + Buffer Percentage)] If the Final Underlier Value is less than the Buffer Value, you will lose some or a substantial portion of your principal amount at maturity. All payments on the Notes are subject to our credit risk. |
| Participation Rate: | 200% (subject to the Maximum Return) |
| Maximum Return: | 21% to 23%, to be determined on the Trade Date. Accordingly, the maximum payment at maturity will be $1,210 to $1,230 per $1,000 principal amount of Notes, to be determined on the Trade Date. |
| Buffer Percentage: | 15% |
| Underlier Return: |
The Underlier Return, expressed as a percentage, is calculated using the following formula: Final Underlier Value – Initial Underlier
Value |
| Final Underlier Value: | The closing value of the Underlier on the Valuation Date |
| Calculation Agent: | RBCCM |
* 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.
| P-2 | RBC Capital Markets, LLC |
| Capped Enhanced Return Buffer Notes Linked to the EURO STOXX 50® Index |
ADDITIONAL TERMS OF YOUR NOTES
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, the underlying supplement no. 1A dated May 16, 2024 and the product supplement no. 1A dated May 16, 2024. 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 “Selected Risk Considerations” 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
| · | Underlying Supplement No. 1A dated May 16, 2024: |
https://www.sec.gov/Archives/edgar/data/1000275/000095010324006773/dp211259_424b2-us1a.htm
| · | Product Supplement No. 1A dated May 16, 2024: |
https://www.sec.gov/Archives/edgar/data/1000275/000095010324006777/dp211286_424b2-ps1a.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.
| P-3 | RBC Capital Markets, LLC |
| Capped Enhanced Return Buffer Notes Linked to the EURO STOXX 50® Index |
HYPOTHETICAL RETURNS
The table and examples set forth below illustrate hypothetical payments at maturity for hypothetical performance of the Underlier, based on the Buffer Value of 85% of the Initial Underlier Value, the Participation Rate of 200%, a hypothetical Maximum Return of 21% (the actual Maximum Return will be determined on the Trade Date) and the Buffer Percentage of 15%. The table and examples are only for illustrative purposes and may not show the actual return applicable to investors.
| Hypothetical Underlier Return | Payment at Maturity per $1,000 Principal Amount of Notes | Payment at Maturity as Percentage of Principal Amount |
| 50.00% | $1,210.00 | 121.000% |
| 40.00% | $1,210.00 | 121.000% |
| 30.00% | $1,210.00 | 121.000% |
| 20.00% | $1,210.00 | 121.000% |
| 10.50% | $1,210.00 | 121.000% |
| 10.00% | $1,200.00 | 120.000% |
| 5.00% | $1,100.00 | 110.000% |
| 2.00% | $1,040.00 | 104.000% |
| 0.00% | $1,000.00 | 100.000% |
| -5.00% | $1,000.00 | 100.000% |
| -10.00% | $1,000.00 | 100.000% |
| -15.00% | $1,000.00 | 100.000% |
| -20.00% | $950.00 | 95.000% |
| -30.00% | $850.00 | 85.000% |
| -40.00% | $750.00 | 75.000% |
| -50.00% | $650.00 | 65.000% |
| -60.00% | $550.00 | 55.000% |
| -70.00% | $450.00 | 45.000% |
| -80.00% | $350.00 | 35.000% |
| -90.00% | $250.00 | 25.000% |
| -100.00% | $150.00 | 15.000% |
| Example 1 — | The value of the Underlier increases from the Initial Underlier Value to the Final Underlier Value by 2%. | |
| Underlier Return: | 2% | |
| Payment at Maturity: |
$1,000 + ($1,000 × the lesser of (a) 2% × 200% and (b) 21%) = $1,000 + ($1,000 × the lesser of (a) 4% and (b) 21%) = $1,000 + ($1,000 × 4%) = $1,000 + $40 = $1,040 | |
|
In this example, the payment at maturity is $1,040 per $1,000 principal amount of Notes, for a return of 4%. Because the Final Underlier Value is greater than the Initial Underlier Value, investors receive a return equal to 200% of the Underlier Return, subject to the Maximum Return of 21%.
| ||
| P-4 | RBC Capital Markets, LLC |
| Capped Enhanced Return Buffer Notes Linked to the EURO STOXX 50® Index |
| Example 2 — | The value of the Underlier increases from the Initial Underlier Value to the Final Underlier Value by 30%, resulting in a return equal to the Maximum Return. | |
| Underlier Return: | 30% | |
| Payment at Maturity: |
$1,000 + ($1,000 × the lesser of (a) 30% × 200% and (b) 21%) = $1,000 + ($1,000 × the lesser of (a) 60% and (b) 21%) = $1,000 + ($1,000 × 21%) = $1,000 + $210 = $1,210 | |
|
In this example, the payment at maturity is $1,210 per $1,000 principal amount of Notes, for a return of 21%, which is the Maximum Return. This example illustrates that investors will not receive a return at maturity in excess of the Maximum Return. Accordingly, the return on the Notes may be less than the return of the Underlier. | ||
| Example 3 — | The value of the Underlier decreases from the Initial Underlier Value to the Final Underlier Value by 10% (i.e., the Final Underlier Value is below the Initial Underlier Value but above the Buffer Value). | |
| Underlier Return: | -10% | |
| Payment at Maturity: | $1,000 | |
|
In this example, the payment at maturity is $1,000 per $1,000 principal amount of Notes, for a return of 0%. Because the Final Underlier Value is greater than the Buffer Value, investors receive a full return of the principal amount of their Notes. | ||
| Example 4 — | The value of the Underlier decreases from the Initial Underlier Value to the Final Underlier Value by 50% (i.e., the Final Underlier Value is below the Buffer Value). | |
| Underlier Return: | -50% | |
| Payment at Maturity: | $1,000 + [$1,000 × (-50% + 15%)] = $1,000 – $350 = $650 | |
|
In this example, the payment at maturity is $650 per $1,000 principal amount of Notes, representing a loss of 35% of the principal amount. Because the Final Underlier Value is less than the Buffer Value, investors do not receive a full return of the principal amount of their Notes. | ||
Investors in the Notes could lose some or a substantial portion of the principal amount of their Notes at maturity.
| P-5 | RBC Capital Markets, LLC |
| Capped Enhanced Return Buffer Notes Linked to the EURO STOXX 50® Index |
SELECTED RISK CONSIDERATIONS
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
| · | You May Lose a Substantial Portion of the Principal Amount at Maturity — If the Final Underlier Value is less than the Buffer Value, you will lose 1% of the principal amount of your Notes for each 1% that the Final Underlier Value is less than the Initial Underlier Value in excess of the Buffer Percentage. You could lose some or a substantial portion of your principal amount at maturity. |
| · | Your Potential Return at Maturity Is Limited — Your return on the Notes will not exceed the Maximum Return, regardless of any appreciation in the value of the Underlier, which may be significant. 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 Underlier. |
| · | The Notes Do Not Pay Interest, and Your Return on the Notes 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. |
| · | 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. |
| · | Any Payment on the Notes Will Be Determined Based on the Closing Values of the Underlier on the Dates Specified — Any payment on the Notes will be determined based on the closing values of the Underlier on the dates specified. You will not benefit from any more favorable value of the Underlier determined at any other time. |
| · | 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. You should review carefully the section entitled “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 may 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 |
| P-6 | RBC Capital Markets, LLC |
| Capped Enhanced Return Buffer Notes Linked to the EURO STOXX 50® Index |
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 value of the Underlier, 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, the referral fee, 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, the referral fee, 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.
Risks Relating to Conflicts of Interest and Our Trading Activities
| · | Our and Our Affiliates’ 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 and our affiliates’ economic interests are potentially adverse to your interests as an investor in the Notes due to our and our affiliates’ business and trading activities, and we and our affiliates have no obligation to consider your interests in taking any actions that might affect the value of the Notes. Trading by us and our affiliates may adversely affect the value of the Underlier 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 Underlier 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 Underlier” 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. |
| P-7 | RBC Capital Markets, LLC |
| Capped Enhanced Return Buffer Notes Linked to the EURO STOXX 50® Index |
Risks Relating to the Underlier
| · | You Will Not Have Any Rights to the Securities Included in the Underlier — 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 the securities included in the Underlier. The Underlier is a price return index and its return does not reflect regular cash dividends paid by its components. |
| · | The Notes Are Subject to Risks Relating to Non-U.S. Securities Markets — The equity securities composing the Underlier are issued by non-U.S. companies in non-U.S. securities markets. Investments in securities linked to the value of such non-U.S. equity securities involve risks associated with the securities markets in the home countries of the issuers of those non-U.S. equity securities, including risks of volatility in those markets, governmental intervention in those markets and cross shareholdings in companies in certain countries. Also, there is generally less publicly available information about companies in some of these jurisdictions than there is about U.S. companies that are subject to the reporting requirements of the SEC, and generally non-U.S. companies are subject to accounting, auditing and financial reporting standards and requirements and securities trading rules different from those applicable to U.S. reporting companies. The prices of securities in non-U.S. markets may be affected by political, economic, financial and social factors in those countries, or global regions, including changes in government, economic and fiscal policies and currency exchange laws. |
| · | The Notes Do Not Provide Direct Exposure to Fluctuations in Exchange Rates between the U.S. Dollar and the Euro — The Underlier is composed of non-U.S. securities denominated in euros. Because the value of the Underlier is also calculated in euros (and not in U.S. dollars), the performance of the Underlier will not be adjusted for exchange rate fluctuations between the U.S. dollar and the euro. In addition, any payments on the Notes determined based on the performance of the Underlier will not be adjusted for exchange rate fluctuations between the U.S. dollar and the euro. Therefore, holders of the Notes will not benefit from any appreciation of the euro relative to the U.S. dollar. |
| · | We May Accelerate the Notes If a Change-in-Law Event Occurs — Upon the occurrence of legal or regulatory changes that may, among other things, prohibit or otherwise materially restrict persons from holding the Notes or the Underlier or its components, or engaging in transactions in them, the Calculation Agent may determine that a change-in-law-event has occurred and accelerate the Maturity Date for a payment determined by the Calculation Agent in its sole discretion. 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, by the occurrence of such legal or regulatory changes. See “General Terms of Notes—Change-in-Law Events” in the accompanying product supplement. |
| · | 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 the Underlier. If a market disruption event persists for a sustained period, the Calculation Agent may make a determination of the closing value of the Underlier. See “General Terms of the Notes—Indices—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. |
| · | Adjustments to the Underlier Could Adversely Affect Any Payments on the Notes — The sponsor of the Underlier may add, delete, substitute or adjust the securities composing the Underlier or make other methodological changes to the Underlier that could affect its performance. The Calculation Agent will calculate the value to be used as the closing value of the Underlier in the event of certain material changes in, or modifications to, the Underlier. In addition, the sponsor of the Underlier may also discontinue or suspend calculation or publication of the Underlier at any time. Under these circumstances, the Calculation Agent may select a successor index that the Calculation Agent determines to be comparable to the Underlier or, if no successor index is available, the Calculation Agent will determine the value to be used as the closing value of the Underlier. Any of these actions could adversely affect the value of the Underlier and, consequently, the value of the Notes. See “General Terms of the Notes—Indices—Discontinuation of, or Adjustments to, an Index” in the accompanying product supplement. |
| P-8 | RBC Capital Markets, LLC |
| Capped Enhanced Return Buffer Notes Linked to the EURO STOXX 50® Index |
INFORMATION REGARDING THE UNDERLIER
The Underlier is a free float market capitalization-weighted index composed of 50 of the largest stocks in terms of free float market capitalization traded on major Eurozone exchanges. For more information about the Underlier, see “Indices—The STOXX Benchmark Indices” in the accompanying underlying supplement.
Historical Information
The following graph sets forth historical closing values of the Underlier for the period from January 1, 2015 to June 27, 2025. The red line represents a hypothetical Buffer Value based on the closing value of the Underlier on June 27, 2025. We obtained the information in the graph from Bloomberg Financial Markets, without independent investigation. We cannot give you assurance that the performance of the Underlier will result in the return of all of your initial investment.
EURO STOXX 50® Index
PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS.
| P-9 | RBC Capital Markets, LLC |
| Capped Enhanced Return Buffer Notes Linked to the EURO STOXX 50® Index |
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 Underlier. 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 that are “open transactions,” as described in the section entitled “United States Federal Income Tax Considerations—Tax Consequences to U.S. Holders—Notes Treated as Prepaid Financial Contracts that are Open Transactions” 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. Generally, if this treatment is respected, (i) you should not recognize taxable income or loss prior to the taxable disposition of your Notes (including upon maturity or an earlier redemption, if applicable) and (ii) the gain or loss on your Notes should be treated as short-term capital gain or loss unless you have held the Notes for more than one year, in which case your gain or loss should be treated as long-term capital gain or loss.
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. 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.
| P-10 | RBC Capital Markets, LLC |
| Capped Enhanced Return Buffer Notes Linked to the EURO STOXX 50® Index |
SUPPLEMENTAL PLAN OF DISTRIBUTION (CONFLICTS OF INTEREST)
The Notes are offered initially to investors at a purchase price equal to par, except with respect to certain accounts as indicated on the cover page of this pricing supplement. We or one of our affiliates may pay the underwriting discount and may pay a broker-dealer that is not affiliated with us a referral fee, in each case as set forth on the cover page of this pricing 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 three months after the Issue 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, the referral fee 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, the referral fee 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.
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, the referral fee 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 “Selected Risk Considerations—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.
| P-11 | RBC Capital Markets, LLC |
FAQ
Why did SGH file a Post-Effective Amendment to its Form S-8 registrations?
Does the amendment register additional Penguin Solutions shares?
What happens to outstanding equity awards under SGH’s stock plans?
When was the redomiciliation of Penguin Solutions completed?
Which SEC filings are incorporated by reference in this amendment?
