Royal Bank of Canada
Market Linked Securities
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Registration Statement No. 333-259205
Filed Pursuant to Rule 433
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Market Linked Securities—Auto-Callable with Contingent Coupon and Contingent Downside
Principal at Risk Securities Linked to the Common Stock of Tesla, Inc. due December 19, 2025
Term Sheet to Preliminary Pricing Supplement dated November 29, 2022
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Issuer:
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Royal Bank of Canada
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Market Measure:
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Common Stock of Tesla, Inc. (the "Underlying Stock")
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Pricing Date*:
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December 16, 2022
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Issue Date*:
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December 21, 2022
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Face Amount and
Original Offering
Price:
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$1,000 per security
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Contingent Coupon
Payments:
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On each contingent coupon payment date, you will receive a contingent coupon payment at a per annum rate equal to the contingent coupon rate if, and only if, the stock closing price of the Underlying Stock on the related calculation day is greater than or equal to the threshold price. Each “contingent coupon payment,” if any, will
be calculated per security as follows: ($1,000 × contingent coupon rate)/4.
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Contingent Coupon
Payment Dates:
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Quarterly, on the third business day following each calculation day; provided that the contingent coupon payment date with respect to the final calculation day will be
the stated maturity date.
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Contingent Coupon
Rate:
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At least 22.50% per annum, to be determined on the pricing date
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Automatic Call:
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If the stock closing price of the Underlying Stock on any of the calculation days from June 2023 to September 2025, inclusive, is greater than or equal to the starting
price, the securities will be automatically called, and on the related call settlement date you will be entitled to receive a cash payment per security equal to the face amount plus a final contingent coupon payment.
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Calculation Days*:
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Quarterly, on the 16th day of each March, June, September and December, commencing March 2023 and ending September 2025, and on December 16, 2025 (the “final
calculation day”)
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Call Settlement Date:
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Three business days after the applicable calculation day.
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Maturity Payment
Amount (per security):
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• if the
ending price is greater than or equal to the threshold price: $1,000; or
• if the
ending price is less than the threshold price:
$1,000 minus
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Stated Maturity Date*:
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December 19, 2025
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Starting Price:
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The stock closing price of the Underlying Stock on the pricing date
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Ending Price:
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The stock closing price of the Underlying Stock on the final calculation day
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Threshold Price:
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50% of the starting price
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Calculation Agent:
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RBC Capital Markets, LLC (“RBCCM”), an affiliate 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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Agent Discount**:
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Up to 2.125%; dealers, including those using the trade name Wells Fargo Advisors (“WFA”), may receive a selling concession of up to 1.50% and WFS may pay
0.075% of the agent’s discount to WFA as a distribution expense fee
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CUSIP:
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78016HCU2
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Material Tax Consequences:
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See the preliminary pricing supplement.
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If The Securities Are Not Automatically Called Prior To Stated Maturity, You May Lose Some Or All Of The Face Amount Of Your Securities At Stated Maturity.
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The Securities Do Not Provide For Fixed Payments Of Interest And You May Receive No Coupon Payments On One Or More Contingent Coupon Payment Dates, Or Even Throughout The Entire Term Of The Securities.
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You May Be Fully Exposed To The Decline In The Underlying Stock From The Starting Price, But Will Not Participate In Any Positive Performance Of The Underlying Stock.
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Higher Contingent Coupon Rates Are Associated With Greater Risk.
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You Will Be Subject To Reinvestment Risk.
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A Contingent Coupon Payment Date, A Call Settlement Date And The Stated Maturity Date May Be Postponed If A Calculation Day Is Postponed.
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The Securities Are Subject To Credit Risk.
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Significant Aspects Of The Tax Treatment Of The Securities Are Uncertain.
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Our Initial Estimated Value Of The Securities Will Be Less Than The Original Offering Price.
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The Initial Estimated Value Of The Securities Is An Estimate Only, Calculated As Of The Time The Terms Of The Securities Are Set.
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The Value Of The Securities Prior To Stated Maturity Will Be Affected By Numerous Factors, Some Of Which Are Related In Complex Ways.
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The Securities Will Not Be Listed On Any Securities Exchange And We Do Not Expect A Trading Market For The Securities To Develop.
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The Securities Will Be Subject To Single Stock Risk.
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Any Payment Upon An Automatic Call Or At Stated Maturity Will Depend Upon The Performance Of The Underlying Stock And Therefore The Securities Are Subject To A Variety Of Risks, Each As Discussed In More
Detail In The Accompanying Product Supplement.
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Our Economic Interests And Those Of Any Dealer Participating In The Offering Are Potentially Adverse To Your Interests.
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