Royal Bank of Canada
Market Linked Securities
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Filed Pursuant to Rule 433
Registration No. 333-259205
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Market Linked Securities – Upside Participation with Contingent Minimum Return and Contingent Downside Principal at Risk Securities Linked to the
EURO STOXX® Banks Index due December 16, 2024
Term Sheet to Preliminary Pricing Supplement No. WFC170 dated November 30, 2021
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Issuer
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Royal Bank of Canada
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Term
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Approximately 3 years
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Index
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EURO STOXX® Banks Index
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Pricing Date
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December 10, 2021*
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Original Issue Date
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December 15, 2021*
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Principal Amount
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$1,000 per security (each security will be offered at an initial public offering price of $1,000)
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Payment at
Maturity
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See “How the maturity payment amount is calculated” on page 3
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Maturity Date
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December 16, 2024*
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Initial Index Level
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The closing level of the Index on the pricing date
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Final Index Level
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The closing level of the Index on the valuation date
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Contingent
Minimum Return
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[37.00% - 41.00%] of the principal amount, or [$370.00 – $410.00] per security (to be determined on the pricing date)
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Threshold Level
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70.00% of the Initial Index Level
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Participation Rate
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100%
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Valuation Date
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December 9, 2024
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Calculation Agent
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RBC Capital Markets, LLC, a wholly-owned subsidiary of the issuer
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Denominations
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$1,000 and any integral multiple of $1,000
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Underwriting
Discount and
Commission
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Up to 2.675%, of which dealers, including those using the trade name Wells Fargo Advisors (“WFA”), may receive a selling concession of 2.00% and WFA will receive a
distribution expense fee of 0.075%.
In respect of certain securities sold in this offering, our affiliate, RBC Capital Markets, LLC, may pay a fee of up to $1.50 per security to selected securities dealers in
consideration for marketing and other services in connection with the distribution of the securities to other securities dealers.
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CUSIP
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78016F6V1
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Linked to the EURO STOXX® Banks Index.
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Unlike ordinary debt securities, the securities do not pay interest or repay a fixed amount of principal at maturity. Instead, the securities provide for a payment at maturity that may be greater than,
equal to or less than the initial public offering price of the securities, depending on the performance of the Index from its Initial Index Level to its Final Index Level.
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Investors may lose more than 30%, and up to 100%, of the initial public offering price
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All payments on the securities are subject to the credit risk of Royal Bank of Canada, and you will have no ability to pursue the issuer of any securities represented by the Index for payment; if Royal Bank
of Canada defaults on its obligations, you could lose some or all of your investment
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No periodic interest payments or dividends
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No exchange listing; designed to be held to maturity
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The issuer’s initial estimated value of the securities as of the pricing date is expected to be between $903.94 and $953.94 per $1,000 in principal amount, and will be less than the
public offering price. The final pricing supplement relating to the securities will set forth the issuer’s estimate of the initial value of the securities as of the pricing date. The market value of the securities at any time will
reflect many factors, cannot be predicted with accuracy, and may be less than this amount. See “Risk Factors” and “Supplemental Plan of Distribution – Structuring the Securities” in the accompanying preliminary pricing supplement for
further information.
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Hypothetical
Final Index Level
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Percentage Change from the
Hypothetical Initial Index Level to
the Hypothetical
Final Index Level
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Hypothetical Maturity Payment
Amount per Security
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Hypothetical Pre-Tax
Total Rate of Return on
the Securities
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0.00
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-100.00%
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$0.00
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-100.00%
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10.00
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-90.00%
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$100.00
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-90.00%
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20.00
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-80.00%
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$200.00
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-80.00%
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30.00
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-70.00%
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$300.00
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-70.00%
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40.00
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-60.00%
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$400.00
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-60.00%
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50.00
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-50.00%
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$500.00
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-50.00%
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60.00
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-40.00%
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$600.00
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-40.00%
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70.00
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(1)
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-30.00%
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$1,000.00
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0.00%
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80.00
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-20.00%
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$1,000.00
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0.00%
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85.00
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-15.00%
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$1,000.00
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0.00%
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90.00
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-10.00%
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$1,000.00
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0.00%
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95.00
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-5.00%
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$1,000.00
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0.00%
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100.00
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(2)
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0.00%
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$1,390.00
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(3)
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39.00%
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110.00
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10.00%
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$1,390.00
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39.00%
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120.00
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20.00%
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$1,390.00
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39.00%
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130.00
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30.00%
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$1,390.00
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39.00%
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139.00
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39.00%
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$1,390.00
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39.00%
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140.00
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40.00%
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$1,400.00
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40.00%
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150.00
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50.00%
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$1,500.00
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50.00%
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160.00
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60.00%
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$1,600.00
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60.00%
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170.00
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70.00%
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$1,700.00
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70.00%
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180.00
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80.00%
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$1,800.00
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80.00%
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190.00
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90.00%
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$1,900.00
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90.00%
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200.00
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100.00%
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$2,000.00
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100.00%
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(1) |
This is the hypothetical Threshold Level.
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(2) |
This is the hypothetical Initial Index Level.
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(3) |
This is the sum of the principal amount plus the hypothetical Contingent Minimum Return of $390.00 (the mid-point of the range for the Contingent Minimum Return).
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If the Final Index Level is greater than or equal to the Initial Index Level, the maturity payment amount per security will equal the greater of:
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(i) |
$1,000 plus the Contingent Minimum Return and
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(ii) |
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If the Final Index Level is less than the Initial Index Level but greater than or equal to the Threshold Level, the maturity payment amount per security will equal the
issue price of $1,000.00
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If the Final Index Level is less than the Threshold Level, the maturity payment amount per security will equal:
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Your investment may result in a loss of more than 30%, and up to 100%, of your principal
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You will not receive interest payments on the securities
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Your yield may be lower than the yield on a standard debt security of comparable maturity
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You will receive the Contingent Minimum Return only if the Final Index Level is greater than or equal to the Initial Index Level
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The amount to be paid at maturity is not linked to the level of the Index at any time other than the valuation date
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Owning the securities is not the same as owning the common stocks represented by the Index
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The securities will be debt obligations of Royal Bank of Canada. No other company or entity will be responsible for payments under the securities
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The tax treatment of the securities is uncertain and gain on the securities may be treated as ordinary income under the constructive ownership rules
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There may not be an active trading market for the securities
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Many factors affect the market value of the securities
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An investment in the securities is subject to risks relating to non-U.S. companies
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The securities will not be adjusted for changes in exchange rates
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The Index is concentrated in the banking industry
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Changes that affect the Index will affect the market value of the securities and the maturity payment amount
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We have no affiliation with the sponsor of the Index and will not be responsible for any actions taken by the sponsor
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Historical levels of the Index should not be taken as an indication of the future levels of the Index during the term of the securities
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Our initial estimated value of the securities will be less than the initial public offering price
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The price, if any, at which you may be able to sell your securities prior to maturity may be less than the initial public offering price and our initial estimated value
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The initial estimated value of the securities will be an estimate only, calculated as of the time the terms of the securities are set
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Hedging transactions may affect the return on the securities
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Potential conflicts of interest could arise
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The calculation agent may postpone the valuation date and, therefore, determination of the Final Index Level and the maturity date if a market disruption event occurs on the valuation date
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There are potential conflicts of interest between you and the calculation agent
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