Filed Pursuant to Rule 424(b)(2)
Registration Statement No. 333-259205
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Pricing Supplement
Dated November 30, 2022
To the Product Prospectus Supplement No. CCBN-2, the Prospectus Supplement and the Prospectus, Each Dated September 14, 2021
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$1,000,000
Contingent Coupon Barrier Notes Linked to the S&P
500® Index, Due December 5, 2023
Royal Bank of Canada
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Reference Index
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Initial Level
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Coupon Barrier and Barrier Level*
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S&P 500® Index (“SPX”)
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4,080.11
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2,448.07, which is 60% of the Initial Level
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Issuer:
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Royal Bank of Canada
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Stock Exchange Listing:
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None
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Trade Date:
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November 30, 2022
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Principal Amount:
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$1,000 per Note
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Issue Date:
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December 5, 2022
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Maturity Date:
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December 5, 2023
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Observation Dates:
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Quarterly, as set forth below.
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Coupon Payment Dates:
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Quarterly, as set forth below.
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Valuation Date:
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November 30, 2023
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Contingent Coupon Rate:
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8.30% per annum
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Initial Level:
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The closing level of the Reference Index on the Trade Date, as set forth in the table above.
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Final Level:
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The closing level of the Reference Index on the Valuation Date.
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Contingent Coupon:
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If the closing level of the Reference Index is greater than or equal to the Coupon Barrier on the applicable Observation Date, we will pay the Contingent Coupon on the applicable
Coupon Payment Date. You may not receive any Contingent Coupons during the term of the Notes.
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Payment at Maturity (if
held to maturity):
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We will pay you at maturity an amount based on the Final Level:
The investor will receive at maturity, for each $1,000 in principal amount, $1,000 plus the final Contingent Coupon, unless the Final Level is less than the Barrier Level.
If the Final Level is less than the Barrier Level, then the investor will receive at maturity, for each $1,000 in principal amount, a cash payment equal to:
$1,000 + ($1,000 x Underlying Return)
Investors could lose some or all of the principal amount if the Final Level is less than the Barrier Level.
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CUSIP:
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78016HCB4
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Per Note
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Total
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Price to public
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100.00%
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$1,000,000
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Underwriting discounts and commissions(1)
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0.00%
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$0.00
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Proceeds to Royal Bank of Canada
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100.00%
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$1,000,000
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Contingent Coupon Barrier Notes Linked to the
S&P 500® Index
Royal Bank of Canada |
General:
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This pricing supplement relates to an offering of Contingent Coupon Barrier Notes (the “Notes”) linked to the S&P 500® Index (the
“Reference Index”). Please see the section below, “Information Regarding the Reference Index” for additional information about this index.
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Issuer:
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Royal Bank of Canada (“Royal Bank”)
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Trade Date:
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November 30, 2022
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Issue Date:
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December 5, 2022
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Valuation Date:
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November 30, 2023
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Maturity Date:
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December 5, 2023
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Denominations:
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Minimum denomination of $1,000, and integral multiples of $1,000 thereafter.
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Contingent Coupon:
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We will pay you a Contingent Coupon during the term of the Notes, periodically in arrears on each Coupon Payment Date, under the conditions described below:
• If the closing level of the Reference Index is greater than or equal to the Coupon Barrier on the applicable Observation Date, we will pay the Contingent Coupon applicable to that Observation Date.
• If the closing level of the Reference Index is less than the Coupon Barrier on the applicable Observation Date, we will not pay you the Contingent Coupon applicable to that Observation Date.
You may not receive a Contingent Coupon for one or more quarterly periods during the term of the Notes.
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Contingent Coupon
Rate:
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8.30% per annum (2.075% per Coupon Payment Date)
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Observation Dates and
Coupon Payment
Dates:
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Quarterly, as set forth in the table below:
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Observation Dates:
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Coupon Payment Dates:
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February 28, 2023
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March 3, 2023
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May 30, 2023
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June 2, 2023
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August 30, 2023
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September 5, 2023
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November 30, 2023
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December 5, 2023
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Record Dates:
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The record date for each Coupon Payment Date will be one business day prior to that scheduled Coupon Payment Date; provided, however, that any Contingent Coupon
payable at maturity will be payable to the person to whom the payment at maturity is payable.
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No Call Feature:
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The Notes are not callable at our option, or based upon any level of the Reference Index.
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Initial Level:
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The closing level of the Reference Index on the Trade Date, as set forth on the cover page of this document.
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Final Level:
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The closing level of the Reference Index on the Valuation Date.
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Coupon Barrier and
Barrier Level:
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60% of the Initial Level, as set forth on the cover page of this document.
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Contingent Coupon Barrier Notes Linked to the
S&P 500® Index
Royal Bank of Canada |
Payment at Maturity (if
held to maturity):
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We will pay you at maturity an amount based on the Final Level:
• If the Final Level is greater than or equal to the Barrier Level, we will pay you a cash payment equal to the principal amount plus the Contingent Coupon otherwise due on the Maturity Date.
• If the Final Level is less than the Barrier Level, you will receive at maturity, for each $1,000 in principal amount, a cash payment equal to:
$1,000 + ($1,000 x Underlying Return)
The amount of cash that you receive will be less than your principal amount, if anything, resulting in a loss that is proportionate to the decline of the Reference
Index from the Trade Date to the Valuation Date. Investors in the Notes could lose some or all of their investment if the Final Level is less than the Barrier Level.
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Underlying Return:
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Final Level – Initial Level
Initial Level
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Calculation Agent:
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RBC Capital Markets, LLC (“RBCCM”)
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U.S. Tax Treatment:
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By purchasing a Note, each holder agrees (in the absence of a change in law, an administrative determination or a judicial ruling to the contrary) to treat the Note as
a pre-paid cash-settled contingent income-bearing derivative contract linked to the Reference Index for U.S. federal income tax purposes. However, the U.S. federal income tax consequences of your investment in the Notes are
uncertain and the Internal Revenue Service could assert that the Notes should be taxed in a manner that is different from that described in the preceding sentence. Please see the section below, “Supplemental Discussion of U.S.
Federal Income Tax Consequences,” and the discussion (including the opinion of Ashurst LLP, our special U.S. tax counsel) in the product prospectus supplement under “Supplemental Discussion of U.S. Federal Income Tax Consequences,”
which apply to the Notes.
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Secondary Market:
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RBCCM (or one of its affiliates), though not obligated to do so, may maintain a secondary market in the Notes after the issue date. The amount that you may receive
upon sale of your Notes prior to maturity may be less than the principal amount.
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Listing:
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The Notes will not be listed on any securities exchange.
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Settlement:
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DTC global (including through its indirect participants Euroclear and Clearstream, Luxembourg as described under “Ownership and Book-Entry Issuance” in the prospectus
dated September 14, 2021).
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Terms Incorporated in
the Master Note:
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All of the terms appearing on the cover page and above the item captioned “Secondary Market” on pages P-2 and P-3 of this pricing supplement and the terms appearing
under the caption “General Terms of the Notes” in the product prospectus supplement dated September 14, 2021, as modified by this pricing supplement.
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Contingent Coupon Barrier Notes Linked to the
S&P 500® Index
Royal Bank of Canada |
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Contingent Coupon Barrier Notes Linked to the
S&P 500® Index
Royal Bank of Canada |
Hypothetical Initial Level:
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100.00*
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Hypothetical Barrier Level and Coupon Barrier:
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60% of the hypothetical Initial Level
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Contingent Coupon Rate:
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8.30% per annum (2.075% per Coupon Payment Date)
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Contingent Coupon Amount:
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$20.75 per Coupon Payment Date
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Observation Dates:
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Quarterly
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Principal Amount:
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$1,000 per Note
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Hypothetical Final Level
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Payment at Maturity as
Percentage of Principal Amount
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Cash Payment Amount per
$1,000 in Principal Amount
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130.00
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102.075%*
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$1,020.75*
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120.00
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102.075%*
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$1,020.75*
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110.00
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102.075%*
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$1,020.75*
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100.00
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102.075%*
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$1,020.75*
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90.00
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102.075%*
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$1,020.75*
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80.00
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102.075%*
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$1,020.75*
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70.00
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102.075%*
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$1,020.75*
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60.00
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102.075%*
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$1,020.75*
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59.99
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59.99%
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$599.90
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50.00
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50.00%
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$500.00
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40.00
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40.00%
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$400.00
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30.00
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30.00%
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$300.00
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20.00
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20.00%
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$200.00
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10.00
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10.00%
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$100.00
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0.00
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0.00%
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$0.00
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Contingent Coupon Barrier Notes Linked to the
S&P 500® Index
Royal Bank of Canada |
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Contingent Coupon Barrier Notes Linked to the
S&P 500® Index
Royal Bank of Canada |
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You May Receive Less than the Principal Amount at Maturity — Investors in the Notes could lose all or a substantial portion of their principal amount if there is a
decline in the level of the Reference Index between the Trade Date and the Valuation Date. If the Final Level is less than the Barrier Level, the amount of cash that you receive at maturity will represent a loss of your principal
that is proportionate to the decline in the closing level of the Reference Index from the Trade Date to the Valuation Date. Any Contingent Coupons received on the Notes prior to the Maturity Date may not be sufficient to compensate
for any such loss.
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You May Not Receive Any Contingent Coupons — We will not necessarily make any coupon payments on the Notes. If the closing level of the Reference Index on an
Observation Date is less than the Coupon Barrier, we will not pay you the Contingent Coupon applicable to that Observation Date. If the closing level of the Reference Index is less than the Coupon Barrier on each of the Observation
Dates and on the Valuation Date, 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 period
of greater risk of principal loss on your Notes. Accordingly, if we do not pay the Contingent Coupon on the Maturity Date, you will also incur a loss of principal, because the Final Level will be less than the Barrier Level.
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The Contingent Coupon Feature Limits Your Potential Return — The return potential of the Notes is limited to the pre-specified Contingent Coupon, regardless of the
appreciation of the Reference Index. In addition, the total return on the Notes will vary based on the number of Observation Dates on which the Contingent Coupon becomes payable prior to maturity. You may be subject to the full
downside performance of the Reference Index even though your potential return is limited to the Contingent Coupon. As a result, the return on an investment in the Notes could be less than the return on a direct investment in
securities included in the Reference Index.
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Your Return on the Notes May Be Lower than the Return on a Conventional Debt Security of Comparable Maturity — The return that you will receive on the Notes, which
could be negative, may be less than the return you could earn on other investments. Even if your return is positive, your return may be less than the return you would earn if you purchased one of our conventional senior interest
bearing debt securities.
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Owning the Notes Is Not the Same as Owning the Securities Represented by the Reference Index — The return on your Notes is unlikely to reflect the return you would
realize if you actually owned the securities represented by the Reference Index. For instance, you will not receive or be entitled to receive any dividend payments or other distributions on those securities during the term of your
Notes. As an owner of the Notes, you will not have voting rights or any other rights that holders of the securities represented by the Reference Index may have. Furthermore, the Reference Index may appreciate substantially during
the term of the Notes, while your potential return will be limited to the applicable Contingent Coupon payments.
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Payments on the Notes Are Subject to Our Credit Risk, and Changes in Our Credit Ratings Are Expected to Affect the Market Value of the Notes — The Notes are our
senior unsecured debt securities. As a result, your receipt of any Contingent Coupons, if payable, and the amount due on any relevant payment date is dependent upon our ability to repay our obligations on the applicable payment
dates. This will be the case even if the level of the Reference Index increases after the Trade Date. No assurance can be given as to what our financial condition will be at any time during the term of the Notes.
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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
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Contingent Coupon Barrier Notes Linked to the
S&P 500® Index
Royal Bank of Canada |
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The Initial Estimated Value of the Notes Is Less than the Price to the Public — The initial estimated value that is set forth on the cover page of this pricing
supplement 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 level of the Reference Index, the borrowing rate we pay to issue
securities of this kind, and the inclusion in the price to the public of 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 hedging costs relating to
the Notes. In addition to bid-ask spreads, the value of the Notes determined by RBCCM for any secondary market price is expected to be based on the secondary rate rather than the internal funding rate used to price the Notes and
determine the initial estimated value. As a result, the secondary price will be less than if the internal funding rate was used. The Notes are not designed to be short-term trading instruments. Accordingly, you should be able and
willing to hold your Notes to maturity.
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The Initial Estimated Value of the Notes that Is Set Forth on the Cover Page of this Pricing Supplement Is an Estimate Only, Calculated as of the Time the Terms of the
Notes Were Set — 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 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.
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•
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Our Business Activities May Create Conflicts of Interest — We and our affiliates expect to engage in trading activities related to the Reference Index that are
not for the account of holders of the Notes or on their behalf. These trading activities may present a conflict between the holders’ interests in the Notes and the interests we and our affiliates will have in their proprietary
accounts, in facilitating transactions, including options and other derivatives transactions, for their customers and in accounts under their management. These trading activities, if they influence the level of the Reference
Index, could be adverse to the interests of the holders of the Notes. We and one or more of our affiliates may, at present or in the future, engage in business with companies included in the Reference Index, including making
loans to or providing advisory services. These services could include investment banking and merger and acquisition advisory services. These activities may present a conflict between our or one or more of our affiliates’
obligations and your interests as a holder of the Notes. Moreover, we, and our affiliates may have published, and in the future expect to publish, research reports with respect to the Reference Index. This research is modified
from time to time without notice and may express opinions or provide
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Contingent Coupon Barrier Notes Linked to the
S&P 500® Index
Royal Bank of Canada |
• |
You Will Not Have Any Rights to the Securities Included in the Reference Index – As a holder of the Notes, you will not have voting rights or rights to receive cash
dividends or other distributions or other rights that holders of securities included in the Reference Index would have.
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•
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The Payments on the Notes Are Subject to Market Disruption Events and Adjustments — The payment at maturity, each Observation Date and the Valuation Date are
subject to adjustment as described in the product prospectus supplement. For a description of what constitutes a market disruption event as well as the consequences of that market disruption event, see “General Terms of the
Notes—Market Disruption Events” in the product prospectus supplement.
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Contingent Coupon Barrier Notes Linked to the
S&P 500® Index
Royal Bank of Canada |
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Contingent Coupon Barrier Notes Linked to the
S&P 500® Index
Royal Bank of Canada |
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Contingent Coupon Barrier Notes Linked to the
S&P 500® Index
Royal Bank of Canada |
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Contingent Coupon Barrier Notes Linked to the
S&P 500® Index
Royal Bank of Canada |
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Contingent Coupon Barrier Notes Linked to the
S&P 500® Index
Royal Bank of Canada |
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Contingent Coupon Barrier Notes Linked to the
S&P 500® Index
Royal Bank of Canada |
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Contingent Coupon Barrier Notes Linked to the
S&P 500® Index
Royal Bank of Canada |