ACCELERATED RETURN NOTES® (ARNs®)
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Issuer
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Royal Bank of Canada (“RBC”)
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Principal Amount
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$10.00 per unit
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Term
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Approximately 14 months
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Market Measure
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The Russell 2000® Index (Bloomberg symbol: “RTY”)
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Payout Profile at
Maturity
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• 3-to-1 upside exposure to
increases in the Market Measure, subject to the Capped Value
• 1-to-1 downside exposure to
decreases in the Market Measure, with 100% of your investment at risk
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Capped Value
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[$11.50 to $11.90] per unit, a [15.00% to 19.00%] return over the principal amount, to be determined on the pricing date.
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Investment
Considerations
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This investment is designed for investors who anticipate that the Market Measure will increase moderately over the term of the notes, and are willing to accept a capped return, take full
downside risk and forgo interim interest payments.
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Preliminary
Offering
Documents
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Exchange Listing
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No
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Depending on the performance of the Market Measure as measured shortly before the maturity date, your investment may result in a loss; there is no guaranteed return of principal.
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Payments on the notes, including repayment of principal, are subject to the credit risk of RBC. If RBC becomes insolvent or is unable to pay its obligations, you may lose your entire investment.
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Your investment return is limited to the return represented by the Capped Value and may be less than a comparable investment directly in the stocks included in the Market Measure.
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The initial estimated value of the notes on the pricing date will be less than their public offering price.
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If you attempt to sell the notes prior to maturity, their market value may be lower than both the public offering price and the initial estimated value of the notes on the pricing date.
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You will have no rights of a holder of the securities represented by the Market Measure, and you will not be entitled to receive securities or dividends or other distributions by the issuers of those
securities.
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The notes are subject to risks associated with small-size capitalization companies.
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Hypothetical
Percentage Change
from the Starting Value
to the Ending Value
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Hypothetical
Redemption Amount
per Unit
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Hypothetical Total Rate of
Return on the Notes
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-100.00%
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$0.00
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-100.00%
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-50.00%
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$5.00
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-50.00%
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-20.00%
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$8.00
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-20.00%
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-10.00%
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$9.00
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-10.00%
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-6.00%
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$9.40
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-6.00%
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-3.00%
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$9.70
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-3.00%
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0.00%
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$10.00
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0.00%
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2.00%
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$10.60
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6.00%
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3.00%
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$10.90
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9.00%
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5.67%
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$11.70(1)
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17.00%
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10.00%
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$11.70
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17.00%
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20.00%
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$11.70
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17.00%
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30.00%
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$11.70
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17.00%
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40.00%
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$11.70
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17.00%
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50.00%
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$11.70
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17.00%
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60.00%
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$11.70
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17.00%
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(1)
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The Redemption Amount per unit cannot exceed the hypothetical Capped
Value.
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