Filed Pursuant to Rule 433
Registration Statement No. 333-259205
Royal Bank of Canada
Market Linked Notes

Market Linked Notes—Upside Participation to a Cap and Principal Return at Maturity
Notes Linked to the Nasdaq-100 Index® due November 2, 2026
Term Sheet to Preliminary Pricing Supplement No. WFC206 dated March 30, 2023
 

Summary of Terms

 
Issuer :
  
Royal Bank of Canada
 
Market Measure:
  
Nasdaq-100 Index® (the “Index”)
 
Pricing Date*:
  
April 27, 2023
 
Issue Date*:
  
May 2, 2023
 
Face Amount and
Original Offering
Price:
  
$1,000 per note
 
Maturity
Payment Amount
(per note):
  
•    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: $1,000
 
Stated Maturity
Date*:
  
November 2, 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 25.50% of the face amount per note, to be determined on the pricing date
 
Upside
Participation
Rate:
  
100%
 
Index Return:
  
(ending level – starting level) / starting level
 
Calculation Day*:
  
October 26, 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 3.325%; 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:
  
78016HWJ5
 
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
Hypothetical Payout Profile***
***assumes a maximum return equal to the lowest possible maximum return that may be determined on the pricing date.

If the ending level is less than the starting level, you will not receive any positive return on the notes at maturity.

The issuer’s initial estimated value of the notes as of the pricing date is expected to be between $902.00 to $952.00 per $1,000 in principal amount, which is less than the public offering price. The final pricing supplement relating to the notes will set forth the issuer’s estimate of the initial value of the notes as of the pricing date. The market value of the notes at any time will reflect many factors, cannot be predicted with accuracy, and may be less than this amount. See “Estimated Value of the Notes” in the accompanying preliminary pricing supplement for further information.
 

The notes have complex features and investing in the notes 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 notes.
NOT A BANK DEPOSIT AND NOT INSURED OR GUARANTEED BY THE FDIC OR ANY OTHER GOVERNMENTAL AGENCY

Selected Risk Considerations
The risks set forth below are discussed in detail in the “Selected Risk Considerations” section in the accompanying preliminary pricing supplement and the “Risk Factors” section in the accompanying product supplement. Please review those risk disclosures carefully.

Risks Relating To The Terms And Structure Of The Notes

 •
You May Not Receive Any Positive Return On Your Investment In The Notes.

•
No Periodic Interest Will Be Paid On The Notes.

•
Your Return Will Be Limited To The Maximum Return And May Be Lower Than The Return On A Direct Investment In The Index.

•
The Notes Are Subject To Credit Risk.

•
The Notes Are Considered To Be Issued With Original Issue Discount And Investors May Have Taxable Income Prior To The Receipt Of The Related Cash.
Risks Relating To The Estimated Value Of The Notes And Any Secondary Market

 •
Our Initial Estimated Value Of The Notes Will Be Less Than The Original Offering Price.

•
The Initial Estimated Value Of The Notes Is An Estimate Only, Calculated As Of The Time The Terms Of The Notes Are Set.

•
The Value Of The Notes Prior To Stated Maturity Will Be Affected By Numerous Factors, Some Of Which Are Related In Complex Ways.

•
The Notes Will Not Be Listed On Any Securities Exchange And We Do Not Expect A Trading Market For The Notes To Develop.
Risks Relating To The Index

 •
The Maturity Payment Amount Will Depend Upon The Performance Of The Index And Therefore The Notes 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.

•
An Investment In The Notes Is Subject To Risks Relating To Non-U.S. Companies.
Risks Relating To Conflicts Of Interest
 
•
Our Economic Interests And Those Of Any Dealer Participating In The Offering Are Potentially Adverse To Your Interests.
 
The issuer has filed a registration statement (including a prospectus) with the SEC for the offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement and other documents the issuer has filed with the SEC for more complete information about the issuer and this offering. You may get these documents for free by visiting EDGAR on the SEC website at www.sec.gov. Alternatively, any underwriter or any dealer participating in the offering will arrange to send you the prospectus if you request it by calling your financial advisor or by calling Royal Bank of Canada toll-free at 1-877-688-2301.

Wells Fargo Advisors is a trade name used by Wells Fargo Clearing Services, LLC and Wells Fargo Advisors Financial Network, LLC, members SIPC, separate registered broker-dealers and non-bank affiliates of Wells Fargo & Company.