Royal Bank of Canada
Market Linked Securities
|
Filed Pursuant to Rule 433
Registration Statement No. 333-259205
|
Market Linked Securities—Leveraged Upside Participation to a Cap and Fixed Percentage Buffered Downside
Principal at Risk Securities Linked to the S&P 500® Index due May 4, 2026
Term Sheet to Preliminary Pricing Supplement No. WFC207 dated March 29, 2023
|
Issuer :
|
Royal Bank of Canada
|
||
Market Measure:
|
S&P 500® Index (the “Index”)
|
||
Pricing Date*:
|
April 27, 2023
|
||
Issue Date*:
|
May 2, 2023
|
||
Face Amount and
Original Offering
Price:
|
$1,000 per security
|
||
Maturity
Payment Amount
(per security):
|
• if the ending level is greater than the starting level:
$1,000 plus the lesser of: (i) $1,000 × index return × upside participation rate;
and (ii) the maximum return;
• if the ending level is less than or equal to the starting level, but greater than or equal to the threshold
level:
$1,000; or
• if the ending level is less than the threshold level:
$1,000 + [$1,000 × (index return + buffer amount)]
|
||
Stated Maturity
Date*:
|
May 4, 2026
|
||
Starting Level:
|
The closing level of the Index on the pricing date
|
||
Ending Level:
|
The closing level of the Index on the calculation day
|
||
Maximum
Return:
|
At least 28.50% of the face amount per security, to be determined on the pricing date
|
||
Threshold Level:
|
80% of the starting level
|
||
Buffer Amount:
|
20%
|
||
Upside
Participation
Rate:
|
200%
|
||
Index Return:
|
(ending level – starting level) / starting level
|
||
Calculation Day*:
|
April 27, 2026
|
||
Calculation
Agent:
|
RBC Capital Markets, LLC (“RBCCM”), an affiliate of the issuer
|
||
Denominations:
|
$1,000 and any integral multiple of $1,000
|
||
Agent
Discount**:
|
Up to 3.075%; dealers, including those using the trade name Wells Fargo Advisors (“WFA”), may receive a selling concession of up to 2.25% and WFA may receive a
distribution expense fee of 0.075%
|
||
CUSIP:
|
78016HWK2
|
||
Material Tax
Consequences:
|
See the preliminary pricing supplement.
|
*subject to change
** In addition, selected dealers may receive a fee of up to 0.10% for marketing and other services
The securities have complex features and investing in the securities involves risks not associated with an investment in conventional debt securities.
See “Selected Risk Considerations” in this term sheet and the accompanying preliminary pricing supplement and “Risk Factors” in the accompanying product supplement.
This introductory term sheet does not provide all of the information that an investor should consider prior to making an investment decision.
Investors should carefully review the accompanying preliminary pricing supplement, product supplement, prospectus supplement and prospectus
before making a decision to invest in the securities.
NOT A BANK DEPOSIT AND NOT INSURED OR GUARANTEED BY THE FDIC OR ANY OTHER GOVERNMENTAL AGENCY
|
• |
If The Ending Level Is Less Than The Threshold Level, You Will Lose Some, And Possibly Up To 90%, Of The Face Amount Of Your Securities At Maturity.
|
• |
No Periodic Interest Will Be Paid On The Securities.
|
• |
Your Return Will Be Limited To The Maximum Return And May Be Lower Than The Return On A Direct Investment In The Index.
|
• |
The Securities Are Subject To Credit Risk.
|
• |
Significant Aspects Of The Tax Treatment Of The Securities Are Uncertain.
|
• |
Our Initial Estimated Value Of The Securities Will Be Less Than The Original Offering Price.
|
• |
The Initial Estimated Value Of The Securities Is An Estimate Only, Calculated As Of The Time The Terms Of The Securities Are Set.
|
• |
The Value Of The Securities Prior To Stated Maturity Will Be Affected By Numerous Factors, Some Of Which Are Related In Complex Ways.
|
• |
The Securities Will Not Be Listed On Any Securities Exchange And We Do Not Expect A Trading Market For The Securities To Develop.
|
• |
The Maturity Payment Amount Will Depend Upon The Performance Of The Index And Therefore The Securities Are Subject To A Variety of Risks, As Discussed In More Detail In The Accompanying Product Supplement.
|
• |
The Stated Maturity Date May Be Postponed If The Calculation Day Is Postponed.
|
• |
Our Economic Interests And Those Of Any Dealer Participating In The Offering Are Potentially Adverse To Your Interests.
|