[424B2] Royal Bank of Canada Prospectus Supplement
Royal Bank of Canada (RY) filed a Rule 424(b)(2) pricing supplement for a $2.76 million offering of Auto-Callable Contingent Coupon Barrier Notes linked to the common stock of Apollo Global Management (APO).
The three-year notes pay a contingent coupon of 12.50% p.a. (3.125% quarterly) when APO’s closing price is at least 65% of the $139.35 initial value on the relevant observation date. Missed coupons carry forward under a “memory” feature.
Automatic call: beginning 26 Dec 2025, the notes are redeemed at par plus accrued coupons if APO closes at or above its initial value on any quarterly observation date.
Principal repayment: if not called and APO is ≥ 65% of the initial value on 28 Jun 2027, investors receive par; otherwise they receive roughly 7.18 APO shares per $1,000, exposing them to losses below the 35% buffer.
The notes are unsecured obligations of RBC, not deposit-insured, not bail-in-able, and will not be exchange-listed. Net proceeds are $2.709 million after a 1.85% underwriting discount. The initial estimated value is $973.34 per $1,000, indicating an issue premium versus RBC’s internal valuation.
Royal Bank of Canada (RY) ha depositato un supplemento di prezzo ai sensi della Regola 424(b)(2) per un'offerta di 2,76 milioni di dollari di Note a Cedola Contingente con Barriera Auto-Richiamabili legate all'azione ordinaria di Apollo Global Management (APO).
Le note triennali pagano una cedola contingente del 12,50% annuo (3,125% trimestrale) quando il prezzo di chiusura di APO è almeno il 65% del valore iniziale di 139,35$ nella data di osservazione rilevante. Le cedole non pagate vengono accumulate grazie a una caratteristica di “memoria”.
Richiamo automatico: a partire dal 26 dicembre 2025, le note saranno rimborsate a valore nominale più le cedole maturate se APO chiude pari o superiore al valore iniziale in una qualsiasi data di osservazione trimestrale.
Rimborso del capitale: se non richiamate e se APO è ≥ 65% del valore iniziale al 28 giugno 2027, gli investitori ricevono il valore nominale; altrimenti ricevono circa 7,18 azioni APO per ogni 1.000$, esponendosi a perdite oltre la soglia di protezione del 35%.
Le note sono obbligazioni non garantite di RBC, non assicurate dai depositi, non soggette a bail-in e non quotate in borsa. Il ricavato netto è di 2,709 milioni di dollari dopo uno sconto di sottoscrizione dell'1,85%. Il valore stimato iniziale è di 973,34$ per ogni 1.000$, indicando un premio di emissione rispetto alla valutazione interna di RBC.
Royal Bank of Canada (RY) presentó un suplemento de precios conforme a la Regla 424(b)(2) para una oferta de 2,76 millones de dólares de Notas con Cupón Contingente y Barrera Auto-llamables vinculadas a las acciones ordinarias de Apollo Global Management (APO).
Las notas a tres años pagan un cupón contingente del 12,50% anual (3,125% trimestral) cuando el precio de cierre de APO es al menos el 65% del valor inicial de 139,35$ en la fecha de observación correspondiente. Los cupones no pagados se acumulan gracias a una función de “memoria”.
Llamada automática: a partir del 26 de diciembre de 2025, las notas se redimen a valor nominal más cupones devengados si APO cierra igual o por encima de su valor inicial en cualquier fecha de observación trimestral.
Reembolso del principal: si no son llamadas y APO está ≥ 65% del valor inicial al 28 de junio de 2027, los inversores reciben el valor nominal; de lo contrario, reciben aproximadamente 7,18 acciones de APO por cada 1,000$, exponiéndose a pérdidas por debajo del colchón del 35%.
Las notas son obligaciones no garantizadas de RBC, no aseguradas por depósitos, no sujetas a rescate interno y no cotizadas en bolsa. Los ingresos netos son de 2,709 millones de dólares tras un descuento de suscripción del 1,85%. El valor estimado inicial es de 973,34$ por cada 1,000$, indicando una prima de emisión frente a la valoración interna de RBC.
Royal Bank of Canada (RY)는 2.76백만 달러 규모의 Apollo Global Management (APO) 보통주와 연계된 자동 콜 가능 조건부 쿠폰 배리어 노트의 가격 보충서(규칙 424(b)(2) 규정)를 제출했습니다.
3년 만기 노트는 APO의 종가가 관련 관찰일에 초기 가치 139.35달러의 65% 이상일 경우 연 12.50% (분기별 3.125%)의 조건부 쿠폰을 지급합니다. 미지급 쿠폰은 '메모리' 기능에 따라 이월됩니다.
자동 콜: 2025년 12월 26일부터 노트는 APO가 분기별 관찰일에 초기 가치 이상으로 마감하면 원금과 누적 쿠폰을 상환합니다.
원금 상환: 콜되지 않고 2027년 6월 28일에 APO가 초기 가치의 65% 이상이면 투자자는 원금을 받고, 그렇지 않으면 1,000달러당 약 7.18주 APO 주식을 받아 35% 보호 범위 이하의 손실에 노출됩니다.
이 노트는 RBC의 무담보 채무로서 예금 보험 대상이 아니며, 강제 전환 대상이 아니고 거래소에 상장되지 않습니다. 순수익은 270.9만 달러이며 1.85% 인수 수수료가 차감된 금액입니다. 초기 추정 가치는 1,000달러당 973.34달러로 RBC 내부 평가 대비 발행 프리미엄을 나타냅니다.
Royal Bank of Canada (RY) a déposé un supplément de prix conformément à la règle 424(b)(2) pour une émission de 2,76 millions de dollars de billets à coupon conditionnel avec barrière et remboursement automatique liés à l'action ordinaire de Apollo Global Management (APO).
Les billets d'une durée de trois ans versent un coupon conditionnel de 12,50% par an (3,125% trimestriel) lorsque le cours de clôture d'APO est au moins égal à 65% de la valeur initiale de 139,35$ à la date d'observation concernée. Les coupons manqués sont reportés grâce à une fonction de « mémoire ».
Rappel automatique : à partir du 26 décembre 2025, les billets sont remboursés à leur valeur nominale plus les coupons courus si APO clôture à ou au-dessus de sa valeur initiale à une date d'observation trimestrielle.
Remboursement du principal : si non rappelés et si APO est ≥ 65% de la valeur initiale au 28 juin 2027, les investisseurs reçoivent la valeur nominale ; sinon, ils reçoivent environ 7,18 actions APO pour 1 000$, s'exposant à des pertes sous le seuil de protection de 35%.
Les billets sont des obligations non garanties de RBC, non assurées par les dépôts, non soumises au bail-in et ne seront pas cotées en bourse. Le produit net s'élève à 2,709 millions de dollars après une décote de souscription de 1,85%. La valeur estimée initiale est de 973,34$ pour 1 000$, indiquant une prime d'émission par rapport à l'évaluation interne de RBC.
Royal Bank of Canada (RY) hat einen Preiszusatz gemäß Regel 424(b)(2) für ein 2,76 Millionen Dollar umfassendes Angebot von Auto-Callable Contingent Coupon Barrier Notes eingereicht, die an die Stammaktien von Apollo Global Management (APO) gekoppelt sind.
Die dreijährigen Notes zahlen einen bedingten Kupon von 12,50% p.a. (3,125% vierteljährlich), wenn der Schlusskurs von APO am jeweiligen Beobachtungstag mindestens 65% des Anfangswerts von 139,35$ beträgt. Ausgefallene Kupons werden durch eine „Memory“-Funktion nachgetragen.
Automatischer Rückruf: Ab dem 26. Dezember 2025 werden die Notes zum Nennwert plus aufgelaufener Kupons zurückgezahlt, wenn APO an einem vierteljährlichen Beobachtungstag auf oder über dem Anfangswert schließt.
Kapitalrückzahlung: Wenn nicht zurückgerufen und APO am 28. Juni 2027 ≥ 65% des Anfangswerts ist, erhalten Anleger den Nennwert; andernfalls erhalten sie ungefähr 7,18 APO-Aktien pro 1.000$, wodurch sie einem Verlust unterhalb des 35%-Puffers ausgesetzt sind.
Die Notes sind ungesicherte Verbindlichkeiten von RBC, nicht durch Einlagen versichert, nicht bail-in-fähig und werden nicht an der Börse gehandelt. Die Nettoerlöse betragen 2,709 Millionen Dollar nach einem Underwriting-Abschlag von 1,85%. Der anfängliche geschätzte Wert liegt bei 973,34$ pro 1.000$, was eine Emissionsprämie gegenüber der internen Bewertung von RBC anzeigt.
- None.
- None.
Insights
TL;DR: Small structured-note issuance; high coupon, 35% downside buffer, limited impact on RBC.
The filing details an Auto-Callable Contingent Coupon Barrier Note linked to APO equity. Product mechanics—12.5% contingent coupon, 65% threshold, quarterly call—are standard for retail yield-enhancement notes. At only $2.76 million, the issuance is immaterial to RBC’s balance sheet and earnings; credit exposure for noteholders is one-way. Investors face equity-style downside below the 35% barrier and pay a 2.7% premium over RBC’s internal fair value. From an issuer perspective, the trade provides low-cost funding; from a shareholder perspective, it neither meaningfully boosts revenue nor adds material risk. Overall impact on RY equity valuation is neutral.
Royal Bank of Canada (RY) ha depositato un supplemento di prezzo ai sensi della Regola 424(b)(2) per un'offerta di 2,76 milioni di dollari di Note a Cedola Contingente con Barriera Auto-Richiamabili legate all'azione ordinaria di Apollo Global Management (APO).
Le note triennali pagano una cedola contingente del 12,50% annuo (3,125% trimestrale) quando il prezzo di chiusura di APO è almeno il 65% del valore iniziale di 139,35$ nella data di osservazione rilevante. Le cedole non pagate vengono accumulate grazie a una caratteristica di “memoria”.
Richiamo automatico: a partire dal 26 dicembre 2025, le note saranno rimborsate a valore nominale più le cedole maturate se APO chiude pari o superiore al valore iniziale in una qualsiasi data di osservazione trimestrale.
Rimborso del capitale: se non richiamate e se APO è ≥ 65% del valore iniziale al 28 giugno 2027, gli investitori ricevono il valore nominale; altrimenti ricevono circa 7,18 azioni APO per ogni 1.000$, esponendosi a perdite oltre la soglia di protezione del 35%.
Le note sono obbligazioni non garantite di RBC, non assicurate dai depositi, non soggette a bail-in e non quotate in borsa. Il ricavato netto è di 2,709 milioni di dollari dopo uno sconto di sottoscrizione dell'1,85%. Il valore stimato iniziale è di 973,34$ per ogni 1.000$, indicando un premio di emissione rispetto alla valutazione interna di RBC.
Royal Bank of Canada (RY) presentó un suplemento de precios conforme a la Regla 424(b)(2) para una oferta de 2,76 millones de dólares de Notas con Cupón Contingente y Barrera Auto-llamables vinculadas a las acciones ordinarias de Apollo Global Management (APO).
Las notas a tres años pagan un cupón contingente del 12,50% anual (3,125% trimestral) cuando el precio de cierre de APO es al menos el 65% del valor inicial de 139,35$ en la fecha de observación correspondiente. Los cupones no pagados se acumulan gracias a una función de “memoria”.
Llamada automática: a partir del 26 de diciembre de 2025, las notas se redimen a valor nominal más cupones devengados si APO cierra igual o por encima de su valor inicial en cualquier fecha de observación trimestral.
Reembolso del principal: si no son llamadas y APO está ≥ 65% del valor inicial al 28 de junio de 2027, los inversores reciben el valor nominal; de lo contrario, reciben aproximadamente 7,18 acciones de APO por cada 1,000$, exponiéndose a pérdidas por debajo del colchón del 35%.
Las notas son obligaciones no garantizadas de RBC, no aseguradas por depósitos, no sujetas a rescate interno y no cotizadas en bolsa. Los ingresos netos son de 2,709 millones de dólares tras un descuento de suscripción del 1,85%. El valor estimado inicial es de 973,34$ por cada 1,000$, indicando una prima de emisión frente a la valoración interna de RBC.
Royal Bank of Canada (RY)는 2.76백만 달러 규모의 Apollo Global Management (APO) 보통주와 연계된 자동 콜 가능 조건부 쿠폰 배리어 노트의 가격 보충서(규칙 424(b)(2) 규정)를 제출했습니다.
3년 만기 노트는 APO의 종가가 관련 관찰일에 초기 가치 139.35달러의 65% 이상일 경우 연 12.50% (분기별 3.125%)의 조건부 쿠폰을 지급합니다. 미지급 쿠폰은 '메모리' 기능에 따라 이월됩니다.
자동 콜: 2025년 12월 26일부터 노트는 APO가 분기별 관찰일에 초기 가치 이상으로 마감하면 원금과 누적 쿠폰을 상환합니다.
원금 상환: 콜되지 않고 2027년 6월 28일에 APO가 초기 가치의 65% 이상이면 투자자는 원금을 받고, 그렇지 않으면 1,000달러당 약 7.18주 APO 주식을 받아 35% 보호 범위 이하의 손실에 노출됩니다.
이 노트는 RBC의 무담보 채무로서 예금 보험 대상이 아니며, 강제 전환 대상이 아니고 거래소에 상장되지 않습니다. 순수익은 270.9만 달러이며 1.85% 인수 수수료가 차감된 금액입니다. 초기 추정 가치는 1,000달러당 973.34달러로 RBC 내부 평가 대비 발행 프리미엄을 나타냅니다.
Royal Bank of Canada (RY) a déposé un supplément de prix conformément à la règle 424(b)(2) pour une émission de 2,76 millions de dollars de billets à coupon conditionnel avec barrière et remboursement automatique liés à l'action ordinaire de Apollo Global Management (APO).
Les billets d'une durée de trois ans versent un coupon conditionnel de 12,50% par an (3,125% trimestriel) lorsque le cours de clôture d'APO est au moins égal à 65% de la valeur initiale de 139,35$ à la date d'observation concernée. Les coupons manqués sont reportés grâce à une fonction de « mémoire ».
Rappel automatique : à partir du 26 décembre 2025, les billets sont remboursés à leur valeur nominale plus les coupons courus si APO clôture à ou au-dessus de sa valeur initiale à une date d'observation trimestrielle.
Remboursement du principal : si non rappelés et si APO est ≥ 65% de la valeur initiale au 28 juin 2027, les investisseurs reçoivent la valeur nominale ; sinon, ils reçoivent environ 7,18 actions APO pour 1 000$, s'exposant à des pertes sous le seuil de protection de 35%.
Les billets sont des obligations non garanties de RBC, non assurées par les dépôts, non soumises au bail-in et ne seront pas cotées en bourse. Le produit net s'élève à 2,709 millions de dollars après une décote de souscription de 1,85%. La valeur estimée initiale est de 973,34$ pour 1 000$, indiquant une prime d'émission par rapport à l'évaluation interne de RBC.
Royal Bank of Canada (RY) hat einen Preiszusatz gemäß Regel 424(b)(2) für ein 2,76 Millionen Dollar umfassendes Angebot von Auto-Callable Contingent Coupon Barrier Notes eingereicht, die an die Stammaktien von Apollo Global Management (APO) gekoppelt sind.
Die dreijährigen Notes zahlen einen bedingten Kupon von 12,50% p.a. (3,125% vierteljährlich), wenn der Schlusskurs von APO am jeweiligen Beobachtungstag mindestens 65% des Anfangswerts von 139,35$ beträgt. Ausgefallene Kupons werden durch eine „Memory“-Funktion nachgetragen.
Automatischer Rückruf: Ab dem 26. Dezember 2025 werden die Notes zum Nennwert plus aufgelaufener Kupons zurückgezahlt, wenn APO an einem vierteljährlichen Beobachtungstag auf oder über dem Anfangswert schließt.
Kapitalrückzahlung: Wenn nicht zurückgerufen und APO am 28. Juni 2027 ≥ 65% des Anfangswerts ist, erhalten Anleger den Nennwert; andernfalls erhalten sie ungefähr 7,18 APO-Aktien pro 1.000$, wodurch sie einem Verlust unterhalb des 35%-Puffers ausgesetzt sind.
Die Notes sind ungesicherte Verbindlichkeiten von RBC, nicht durch Einlagen versichert, nicht bail-in-fähig und werden nicht an der Börse gehandelt. Die Nettoerlöse betragen 2,709 Millionen Dollar nach einem Underwriting-Abschlag von 1,85%. Der anfängliche geschätzte Wert liegt bei 973,34$ pro 1.000$, was eine Emissionsprämie gegenüber der internen Bewertung von RBC anzeigt.
 |
Registration Statement No. 333-275898 Filed Pursuant to Rule 424(b)(2)
| |
|
Pricing Supplement Pricing Supplement dated June 26, 2025 to the Prospectus dated December 20, 2023, the Prospectus Supplement dated December 20, 2023 and the Product Supplement No. 1A dated May 16, 2024 |
$2,760,000
Royal Bank of Canada | |
Royal Bank of Canada is offering Auto-Callable Contingent Coupon Barrier Notes with Memory Coupon (the “Notes”) linked to the performance of the common stock of Apollo Global Management, Inc. (the “Underlier”).
| · | Contingent Coupons with Memory Feature — If the Notes have not been automatically called, investors will receive a Contingent Coupon on a quarterly Coupon Payment Date at a rate of 12.50% per annum if the closing value of the Underlier is greater than or equal to the Coupon Threshold (65% of the Initial Underlier Value) on the immediately preceding Coupon Observation Date. A Contingent Coupon that is not payable on a Coupon Payment Date may be paid later, but only if the closing value of the Underlier is greater than or equal to the Coupon Threshold on a later Coupon Observation Date. You may not receive any Contingent Coupons during the term of the Notes. |
| · | Call Feature — If, on any quarterly Call Observation Date beginning approximately six months following the Trade Date, the closing value of the Underlier is greater than or equal to the Initial Underlier Value, the Notes will be automatically called for 100% of their principal amount plus the Contingent Coupon and any unpaid Contingent Coupons otherwise due. No further payments will be made on the Notes. |
| · | Contingent Return of Principal at Maturity — If the Notes are not automatically called and the Final Underlier Value is greater than or equal to the Barrier Value (65% of the Initial Underlier Value), at maturity, investors will receive the principal amount of their Notes plus the Contingent Coupon and any unpaid Contingent Coupons otherwise due. If the Notes are not automatically called and the Final Underlier Value is less than the Barrier Value, at maturity, investors will receive shares of the Underlier that will likely be worth significantly less than the principal amount of their Notes and could be worth nothing. |
| · | Any payments on the Notes are subject to our credit risk. |
| · | The Notes will not be listed on any securities exchange. |
CUSIP: 78015QSN2
Investing in the Notes involves a number of risks. See “Selected Risk Considerations” beginning on page P-7 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 | 100.00% | $2,760,000 |
| Underwriting discounts and commissions(1) |
1.85% |
$51,060 |
| Proceeds to Royal Bank of Canada | 98.15% | $2,708,940 |
(1) We or one of our affiliates may pay varying selling concessions of up to $18.50 per $1,000 principal amount of Notes in connection with the distribution of the Notes to other registered broker-dealers, consisting of a sales commission of up to $17.50 per $1,000 principal amount of Notes and a structuring fee of up to $1.00 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 $973.34 per $1,000 principal amount of Notes and is less than the public offering price of the Notes. 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
| Auto-Callable Contingent Coupon Barrier Notes with Memory Coupon Linked to the Common Stock of Apollo Global Management, Inc. |
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 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 common stock of Apollo Global Management, Inc. |
| Bloomberg Ticker | Initial Underlier Value(1) | Coupon Threshold and Barrier Value(2) | Physical Delivery Amount(3) | |
| APO UN | $139.35 | $90.58 | 7.18 |
| (1) The closing value of the Underlier on the Trade Date | |
| (2) 65% of the Initial Underlier Value (rounded to two decimal places) | |
| (3) A number of shares of the Underlier equal to $1,000 divided by the Initial Underlier Value (rounded to two decimal places) | |
| Trade Date: | June 26, 2025 |
| Issue Date: | July 1, 2025 |
| Valuation Date:* | June 28, 2027 |
| Maturity Date:* | July 1, 2027 |
| Payment of Contingent Coupons with Memory Feature: |
If the Notes have not been automatically called, investors will receive a Contingent Coupon on a Coupon Payment Date if the closing value of the Underlier is greater than or equal to the Coupon Threshold on the immediately preceding Coupon Observation Date. If a Contingent Coupon is not payable on any Coupon Payment Date, it will be paid on any later Coupon Payment Date on which a Contingent Coupon is payable, if any, together with the payment otherwise due on that later date. For the avoidance of doubt, once a previously unpaid Contingent Coupon has been paid on a later Coupon Payment Date, it will not be paid again on a subsequent date. No Contingent Coupon will be payable on a Coupon Payment Date if the closing value of the Underlier is less than the Coupon Threshold on the immediately preceding Coupon Observation Date. Accordingly, you may not receive a Contingent Coupon on one or more Coupon Payment Dates during the term of the Notes. |
| Contingent Coupon: | If payable, $31.25 per $1,000 principal amount of Notes (corresponding to a rate of 3.125% per quarter or 12.50% per annum) |
| Call Feature: | If, on any Call Observation Date, the closing value of the Underlier is greater than or equal to the Initial Underlier Value, the Notes will be automatically called. Under these circumstances, investors will receive on the Call Settlement Date per $1,000 principal amount of Notes an amount equal to $1,000 plus the Contingent Coupon and any unpaid Contingent Coupons otherwise due. No further payments will be made on the Notes. |
| P-2 | RBC Capital Markets, LLC |
| Auto-Callable Contingent Coupon Barrier Notes with Memory Coupon Linked to the Common Stock of Apollo Global Management, Inc. |
| Payment at Maturity: |
If the Notes are not automatically called, investors will receive on the Maturity Date per $1,000 principal amount of Notes, in addition to any Contingent Coupon and any unpaid Contingent Coupons otherwise due: · If the Final Underlier Value is greater than or equal to the Barrier Value: $1,000 · If the Final Underlier Value is less than the Barrier Value, a number of shares of the Underlier equal to the Physical Delivery Amount. Fractional shares will be paid in cash with a value equal to the number of fractional shares times the Final Underlier Value. If the Notes are not automatically called and the Final Underlier Value is less than the Barrier Value, you will receive shares of the Underlier that will likely be worth significantly less than the principal amount of your Notes and could be worth nothing at maturity. All payments on the Notes are subject to our credit risk. |
| Final Underlier Value: | The closing value of the Underlier on the Valuation Date |
| Coupon Observation Dates:* | Quarterly, as set forth in the table below |
| Coupon Payment Dates:* | Quarterly, as set forth in the table below |
| Call Observation Dates:* | Quarterly, beginning approximately six months following the Trade Date, on each Coupon Observation Date from and including the second Coupon Observation Date, which is December 26, 2025 |
| Call Settlement Date:* | If the Notes are automatically called on any Call Observation Date, the Coupon Payment Date immediately following that Call Observation Date |
| Calculation Agent: | RBCCM |
| Coupon Observation Dates* | Coupon Payment Dates* |
| September 26, 2025 | October 1, 2025 |
| December 26, 2025 | December 31, 2025 |
| March 26, 2026 | March 31, 2026 |
| June 26, 2026 | July 1, 2026 |
| September 28, 2026 | October 1, 2026 |
| December 28, 2026 | December 31, 2026 |
| March 29, 2027 | April 1, 2027 |
| June 28, 2027 (the Valuation Date) | July 1, 2027 (the Maturity Date) |
* 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-3 | RBC Capital Markets, LLC |
| Auto-Callable Contingent Coupon Barrier Notes with Memory Coupon Linked to the Common Stock of Apollo Global Management, Inc. |
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, 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
| · | 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-4 | RBC Capital Markets, LLC |
| Auto-Callable Contingent Coupon Barrier Notes with Memory Coupon Linked to the Common Stock of Apollo Global Management, Inc. |
HYPOTHETICAL RETURNS
The table and examples set forth below illustrate hypothetical payments at maturity for hypothetical performance of the Underlier, based on the Coupon Threshold and Barrier Value of 65% of the Initial Underlier Value and the Contingent Coupon of $31.25 per $1,000 principal amount of Notes. For purposes of the table and examples below, the “Underlier Return” represents the percent change in the value of the Underlier from the Initial Underlier Value to the Final Underlier Value. The table and examples below also assume that the Notes are not automatically called and do not account for any Contingent Coupons that may be paid prior to maturity. The table and examples are only for illustrative purposes and may not show the actual return applicable to investors.
| Hypothetical Underlier Return | Value of Payment at Maturity per $1,000 Principal Amount of Notes* | Value of Payment at Maturity as Percentage of Principal Amount* |
| 50.00% | $1,031.25 | 103.125% |
| 40.00% | $1,031.25 | 103.125% |
| 30.00% | $1,031.25 | 103.125% |
| 20.00% | $1,031.25 | 103.125% |
| 10.00% | $1,031.25 | 103.125% |
| 5.00% | $1,031.25 | 103.125% |
| 0.00% | $1,031.25 | 103.125% |
| -5.00% | $1,031.25 | 103.125% |
| -10.00% | $1,031.25 | 103.125% |
| -20.00% | $1,031.25 | 103.125% |
| -30.00% | $1,031.25 | 103.125% |
| -35.00% | $1,031.25 | 103.125% |
| -35.01% | $649.90 | 64.990% |
| -40.00% | $600.00 | 60.000% |
| -50.00% | $500.00 | 50.000% |
| -60.00% | $400.00 | 40.000% |
| -70.00% | $300.00 | 30.000% |
| -80.00% | $200.00 | 20.000% |
| -90.00% | $100.00 | 10.000% |
| -100.00% | $0.00 | 0.000% |
* Including any final Contingent Coupon otherwise due, but excluding any unpaid Contingent Coupons, if payable. For purposes of the table above, the value of any shares received is calculated as the Physical Delivery Amount times the Final Underlier Value. The actual value of any shares received may be less than the amounts shown above.
| P-5 | RBC Capital Markets, LLC |
| Auto-Callable Contingent Coupon Barrier Notes with Memory Coupon Linked to the Common Stock of Apollo Global Management, Inc. |
| Example 1 — | The value of the Underlier increases from the Initial Underlier Value to the Final Underlier Value by 30%. | |
| Underlier Return: | 30% | |
| Payment at Maturity: |
$1,000 + Contingent Coupon otherwise due + any unpaid Contingent Coupons otherwise due = $1,000 + $31.25 + any unpaid Contingent Coupons otherwise due = $1,031.25 + any unpaid Contingent Coupons otherwise due | |
|
In this example, the payment at maturity is $1,031.25 per $1,000 principal amount of Notes plus any unpaid Contingent Coupons otherwise due. Because the Final Underlier Value is greater than the Coupon Threshold and Barrier Value, investors receive a full return of the principal amount of their Notes plus the Contingent Coupon and any unpaid Contingent Coupons otherwise due. This example illustrates that investors do not participate in any appreciation of the Underlier, which may be significant. | ||
| Example 2 — | 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 Coupon Threshold and Barrier Value). | |
| Underlier Return: | -10% | |
| Payment at Maturity: |
$1,000 + Contingent Coupon otherwise due + any unpaid Contingent Coupons otherwise due = $1,000 + $31.25 + any unpaid Contingent Coupons otherwise due = $1,031.25 + any unpaid Contingent Coupons otherwise due | |
|
In this example, the payment at maturity is $1,031.25 per $1,000 principal amount of Notes plus any unpaid Contingent Coupons otherwise due. Because the Final Underlier Value is greater than the Coupon Threshold and Barrier Value, investors receive a full return of the principal amount of their Notes plus the Contingent Coupon and any unpaid Contingent Coupons otherwise due. | ||
| Example 3 — | 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 Coupon Threshold and Barrier Value). | |
| Underlier Return: | -50% | |
| Payment at Maturity: | Shares of the Underlier with a value of $500 | |
|
In this example, the payment at maturity consists of shares of the Underlier with a value, calculated as of the Valuation Date based on the Final Underlier Value, of $500 per $1,000 principal amount of Notes, representing a loss of 50% of the principal amount. Because the Final Underlier Value is less than the Barrier Value, investors receive shares of the Underlier worth significantly less than the principal amount of their Notes. Fractional shares will be paid in cash. In addition, because the Final Underlier Value is less than the Coupon Threshold, investors do not receive a Contingent Coupon or any unpaid Contingent Coupons at maturity. | ||
Investors in the Notes could lose a substantial portion or all of the principal amount of their Notes at maturity. The table and examples above assume that the Notes are not automatically called. However, if the Notes are automatically called, investors will not receive any further payments after the Call Settlement Date.
| P-6 | RBC Capital Markets, LLC |
| Auto-Callable Contingent Coupon Barrier Notes with Memory Coupon Linked to the Common Stock of Apollo Global Management, Inc. |
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 Portion or All of the Principal Amount at Maturity — If the Notes are not automatically called and the Final Underlier Value is less than the Barrier Value, you will receive shares of the Underlier that will likely be worth significantly less than the principal amount of your Notes and could be worth nothing. |
| · | You May Not Receive Any Contingent Coupons — We will not necessarily pay any Contingent Coupons on the Notes. If the closing value of the Underlier is less than the Coupon Threshold on a Coupon Observation Date, we will not pay you the Contingent Coupon applicable to that Coupon Observation Date on the corresponding Coupon Payment Date. If the closing value of the Underlier is less than the Coupon Threshold 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. Notwithstanding the memory feature described above, there can be no assurance that any unpaid Contingent Coupon will become payable during the term of the Notes. 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. |
| · | You Will Not Participate in Any Appreciation of the Underlier, and Any Potential Return on the Notes Is Limited — The return on the Notes is limited to the Contingent Coupons, if any, that may be payable on the Notes, regardless of any appreciation of the Underlier, which may be significant. As a result, the return on an investment in the Notes could be less than the return on a direct investment in the Underlier. |
| · | The Notes Are Subject to an Automatic Call — If, on any Call Observation Date, the closing value of the Underlier is greater than or equal to the Initial Underlier Value, the Notes will be automatically called, and you will not receive any further payments on the Notes. Because the Notes could be called as early as approximately six months after the Issue Date, the total return on the Notes could be minimal. You may be unable to reinvest your proceeds from the automatic call in an investment with a return that is as high as the return on the Notes would have been if they had not been called. |
| · | 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. 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 “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. |
| P-7 | RBC Capital Markets, LLC |
| Auto-Callable Contingent Coupon Barrier Notes with Memory Coupon Linked to the Common Stock of Apollo Global Management, Inc. |
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 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 Is Less Than the Public Offering Price — The initial estimated value of the Notes is 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 structuring 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 structuring 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. |
| P-8 | RBC Capital Markets, LLC |
| Auto-Callable Contingent Coupon Barrier Notes with Memory Coupon Linked to the Common Stock of Apollo Global Management, Inc. |
| · | 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. |
Risks Relating to the Underlier
| · | You Will Not Have Any Rights to 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 Underlier. |
| · | 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 discretionary determination of the closing value of the Underlier. 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. |
| · | 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 the Underlier. However, the Calculation Agent might not make adjustments in response to all such events that could affect the Underlier. 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 the Underlier, 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 the Underlier upon the occurrence of that event or (ii) in the case of a reorganization event in which only cash is distributed to holders of the Underlier, a substitute security, if the Calculation Agent elects to select one. Any of these actions could adversely affect the value of the Underlier 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. |
| P-9 | RBC Capital Markets, LLC |
| Auto-Callable Contingent Coupon Barrier Notes with Memory Coupon Linked to the Common Stock of Apollo Global Management, Inc. |
INFORMATION REGARDING THE UNDERLIER
The Underlier 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 the Underlier 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.
According to publicly available information, Apollo Global Management, Inc. is an alternative asset manager and a retirement services provider.
The issuer of the Underlier’s SEC file number is 001-41197. The Underlier is listed on the New York Stock Exchange under the ticker symbol “APO.”
Historical Information
The following graph sets forth historical closing values of the Underlier for the period from January 1, 2015 to June 26, 2025. The red line represents the Coupon Threshold and Barrier Value. 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.
Common Stock of Apollo Global Management, Inc.
PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS.
| P-10 | RBC Capital Markets, LLC |
| Auto-Callable Contingent Coupon Barrier Notes with Memory Coupon Linked to the Common Stock of Apollo Global Management, Inc. |
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, 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. 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, our counsel is of the opinion that Section 871(m) should 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.
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-11 | RBC Capital Markets, LLC |
| Auto-Callable Contingent Coupon Barrier Notes with Memory Coupon Linked to the Common Stock of Apollo Global Management, Inc. |
SUPPLEMENTAL PLAN OF DISTRIBUTION (CONFLICTS OF INTEREST)
The Notes are offered initially to investors at a purchase price equal to par. We or one of our affiliates may pay the underwriting discount and may pay a broker-dealer that is not affiliated with us a structuring 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 structuring 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 structuring 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 structuring 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 Is Less Than the Public Offering Price” above.
VALIDITY OF THE NOTES
In the opinion of Norton Rose Fulbright Canada LLP, as Canadian counsel to the Bank, the issue and sale of the Notes has been duly authorized by all necessary corporate action of the Bank in conformity with the indenture, and when the Notes have been duly executed, authenticated and issued in accordance with the indenture and delivered against payment therefor, the Notes will be validly issued and, to the extent validity of the Notes is a matter governed by the laws of the Province of Ontario or Québec, or the federal laws of Canada applicable therein, will be valid obligations of the Bank, subject
| P-12 | RBC Capital Markets, LLC |
| Auto-Callable Contingent Coupon Barrier Notes with Memory Coupon Linked to the Common Stock of Apollo Global Management, Inc. |
to the following limitations: (i) the enforceability of the indenture may be limited by the Canada Deposit Insurance Corporation Act (Canada), the Winding-up and Restructuring Act (Canada) and bankruptcy, insolvency, reorganization, receivership, moratorium, arrangement or winding-up laws or other similar laws of general application affecting the enforcement of creditors’ rights generally; (ii) the enforceability of the indenture is subject to general equitable principles, including the principle that the availability of equitable remedies, such as specific performance and injunction, may only be granted at the discretion of a court of competent jurisdiction; (iii) under applicable limitations statutes generally, including that the enforceability of the indenture will be subject to the limitations contained in the Limitations Act, 2002 (Ontario), and such counsel expresses no opinion as to whether a court may find any provision of the indenture to be unenforceable as an attempt to vary or exclude a limitation period under such applicable limitations statutes; (iv) rights to indemnity and contribution under the Notes or the indenture which may be limited by applicable law; and (v) courts in Canada are precluded from giving a judgment in any currency other than the lawful money of Canada and such judgment may be based on a rate of exchange in existence on a day other than the day of payment, as prescribed by the Currency Act (Canada). This opinion is given as of the date hereof and is limited to the laws of the Provinces of Ontario and Québec and the federal laws of Canada applicable therein. In addition, this opinion is subject to customary assumptions about the trustee’s authorization, execution and delivery of the indenture and the genuineness of signatures and to such counsel’s reliance on the Bank and other sources as to certain factual matters, all as stated in the opinion letter of such counsel dated December 20, 2023, which has been filed as Exhibit 5.3 to the Bank’s Form 6-K filed with the SEC dated December 20, 2023. References to the “indenture” in this paragraph mean the Indenture as defined in the opinion of Norton Rose Fulbright Canada LLP dated December 20, 2023, as further amended and supplemented by the sixth supplemental indenture dated as of July 23, 2024.
In the opinion of Davis Polk & Wardwell LLP, as special United States products counsel to the Bank, when the Notes offered by this pricing supplement have been issued by the Bank pursuant to the indenture, the trustee has made, in accordance with the indenture, the appropriate notation to the master note evidencing such Notes (the “master note”), and such Notes have been delivered against payment as contemplated herein, such Notes will be valid and binding obligations of the Bank, enforceable in accordance with their terms, subject to applicable bankruptcy, insolvency and similar laws affecting creditors’ rights generally, concepts of reasonableness and equitable principles of general applicability (including, without limitation, concepts of good faith, fair dealing and the lack of bad faith) and possible judicial or regulatory actions or applications giving effect to governmental actions or foreign laws affecting creditors’ rights, provided that such counsel expresses no opinion as to (i) the enforceability of any waiver of rights under any usury or stay law or (ii) the effect of fraudulent conveyance, fraudulent transfer or similar provision of applicable law on the conclusions expressed above. This opinion is given as of the date hereof and is limited to the laws of the State of New York. Insofar as the foregoing opinion involves matters governed by the laws of the Provinces of Ontario and Québec and the federal laws of Canada, you have received, and we understand that you are relying upon, the opinion of Norton Rose Fulbright Canada LLP, Canadian counsel for the Bank, set forth above. In addition, this opinion is subject to customary assumptions about the trustee’s authorization, execution and delivery of the indenture and the authentication of the master note and the validity, binding nature and enforceability of the indenture with respect to the trustee, all as stated in the opinion of Davis Polk & Wardwell LLP dated May 16, 2024, which has been filed as an exhibit to the Bank’s Form 6-K filed with the SEC on May 16, 2024. References to the “indenture” in this paragraph mean the Indenture as defined in the opinion of Davis Polk & Wardwell LLP dated May 16, 2024, as further amended and supplemented by the sixth supplemental indenture dated as of July 23, 2024.
| P-13 | RBC Capital Markets, LLC |
FAQ
What coupon rate do the new Royal Bank of Canada (RY) notes pay?
Under what conditions can the notes be automatically called?
What barrier level protects principal at maturity?
How many Apollo shares could investors receive if the barrier is breached?
How does the initial estimated value compare with the issue price?
Are these notes insured or exchange-listed?
