Filed Pursuant to Rule 424(b)(2)
Registration Statement No. 333-275898
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Pricing Supplement
Dated March 26, 2024
to the Product Prospectus Supplement, the Prospectus Supplement and the Prospectus, Each Dated December 20, 2023
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$1,835,000
Fixed Coupon Barrier Notes Linked to the
Common Stock of Tesla, Inc., Due March 31,
2026
Royal Bank of Canada
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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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March 26, 2024
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Principal Amount:
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$1,000 per Note
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Issue Date:
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March 28, 2024
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Maturity Date:
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March 31, 2026
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Initial Stock Price:
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$177.67
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Barrier Price:
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$88.84, which is 50% of the Initial Stock Price (rounded to two decimal places)
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Final Stock Price:
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The closing price of the Reference Stock on the Valuation Date.
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Coupon Payment:
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Each coupon will be paid in equal monthly payments at a rate of 10.50% per annum.
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Payment at Maturity (if
held to maturity):
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For each $1,000 in principal amount of the Notes, the investor will receive at maturity $1,000 plus accrued and unpaid interest, unless the Final Stock Price is less than the Barrier Price.
If the Final Stock Price is less than the Barrier Price, then the investor will receive at maturity, for each $1,000 in principal amount, in addition to the final Coupon Payment, a cash
payment equal to: $1,000 + ($1,000 x Percentage Change)
Investors could lose some or all of their principal amount if the Final Price is less than the Barrier Price.
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Monitoring Period:
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The Valuation Date.
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CUSIP:
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78017FPJ6
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Per Note
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Total
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Price to public(1)
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100.00%
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$1,835,000
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Underwriting discounts and commissions(1)
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2.484%
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$45,587.50
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Proceeds to Royal Bank of Canada
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97.516%
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$1,789,412.50
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Fixed Coupon Barrier Notes
Royal Bank of Canada
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General:
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This pricing supplement relates to an offering of Fixed Coupon Barrier Notes (the “Notes”) linked to the common stock (the “Reference Stock”) of Tesla, Inc. (the
“Reference Stock Issuer”).
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Issuer:
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Royal Bank of Canada (the “Bank”)
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Trade Date (Pricing
Date):
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March 26, 2024
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Issue Date:
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March 28, 2024
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Valuation Date:
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March 26, 2026
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Maturity Date:
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March 31, 2026
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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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Coupon Rate:
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10.50% per annum. Each coupon will be paid in equal monthly payments of 0.875% of the principal amount on the applicable Coupon Payment Date.
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Coupon Payment
Dates:
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Monthly, as follows (subject to postponement as set forth in the product supplement):
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May 1, 2024
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May 31, 2024
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July 1, 2024
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July 31, 2024
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August 29, 2024
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October 1, 2024
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October 31, 2024
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December 2, 2024
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December 31, 2024
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January 30, 2025
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March 3, 2025
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March 31, 2025
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May 1, 2025
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May 30, 2025
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July 1, 2025
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Fixed Coupon Barrier Notes
Royal Bank of Canada
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July 31, 2025
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August 29, 2025
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October 1, 2025
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October 30, 2025
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December 2, 2025
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December 31, 2025
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January 29, 2026
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March 3, 2026
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March 31, 2026 (the Maturity Date)
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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 the Coupon Payment at
maturity will be payable to the person to whom the payment at maturity is payable.
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Initial Stock Price:
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The closing price of the Reference Stock on the Trade Date, as set forth on the cover page of this document.
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Barrier Price:
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50% of the Initial Stock Price, as set forth on the cover page of this document.
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Final Stock Price:
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The closing price of the Reference Stock on the Valuation Date.
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Payment at Maturity (if
held to maturity):
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For each $1,000 in principal amount of the Notes, the investor will receive $1,000 plus the final Coupon Payment, unless the Final Stock Price is less than the Barrier Price.
If the Final Stock Price is below the Barrier Price, you will receive at maturity, for each $1,000 in principal amount, in addition to the final Coupon Payment, a cash payment equal to:
$1,000 + ($1,000 x Percentage Change).
The amount of cash that you will receive in this case will be less than your principal amount, if anything, resulting in a loss that is proportionate to the decline of the Reference Stock
from the Trade Date to the Valuation Date.
Investors in the Notes will lose some or all of their principal amount if the Final Price is less than the Barrier Price.
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Percentage Change:
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Final Stock Price – Initial Stock Price
Initial Stock Price |
Physical Delivery
Amount:
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Not applicable. Payments on the Notes will be made solely in cash.
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Monitoring Period:
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The Valuation Date. The price of the Reference Stock between the Trade Date and the Valuation Date will not impact the Payment at Maturity.
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Monitoring Method:
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Close of Trading Day
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Early Redemption:
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The Notes are not subject to redemption prior to maturity, whether at our option, or based on the closing price of the
Reference Stock at any time.
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Calculation Agent:
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RBC Capital Markets, LLC (“RBCCM”)
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Fixed Coupon Barrier Notes
Royal Bank of Canada
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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 Notes as an investment unit consisting of (i) a
non-contingent debt instrument issued by us to you and (ii) a put option with respect to the Reference Stock written by you and purchased by us. 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 our special U.S. tax counsel, Ashurst LLP) in the product prospectus supplement dated December 20, 2023 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 December 20, 2023).
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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” in this section and the terms appearing under the caption “General Terms of the Notes” in
the product prospectus supplement, as modified by this pricing supplement.
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Fixed Coupon Barrier Notes
Royal Bank of Canada
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Fixed Coupon Barrier Notes
Royal Bank of Canada
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Hypothetical Final Stock Price of
the Reference Stock
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Payment at Maturity as
Percentage of Principal Amount
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Payment at Maturity
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$150.00
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100.00%
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$1,000.00
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$140.00
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100.00%
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$1,000.00
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$130.00
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100.00%
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$1,000.00
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$120.00
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100.00%
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$1,000.00
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$110.00
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100.00%
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$1,000.00
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$100.00
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100.00%
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$1,000.00
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$90.00
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100.00%
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$1,000.00
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$80.00
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100.00%
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$1,000.00
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$70.00
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100.00%
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$1,000.00
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$60.00
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100.00%
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$1,000.00
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$50.00
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100.00%
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$1,000.00
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$49.99
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49.99%
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$499.90
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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%
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$0.00
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Fixed Coupon Barrier Notes
Royal Bank of Canada
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Fixed Coupon Barrier Notes
Royal Bank of Canada
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You May Lose All or a Portion of 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 closing price of the Reference Stock between the Trade Date and the Valuation Date. If the Final Stock Price is less than the Barrier Price, 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 price of the Reference Stock from the Trade Date to the Valuation Date. The rate of interest payable on the Notes may not be sufficient to compensate for any such loss.
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The Payments on the Notes Are Limited — The payments on the Notes will be limited to the Coupon Payments. Accordingly, your return on the Notes may be less than your
return would be if you made an investment in the Reference Stock or in a security directly linked to the positive performance of the Reference Stock.
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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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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, the amount due on any relevant payment date is dependent upon our ability to repay our obligations on that date. This will be the case even if the price of the Reference Stock increases after the
Trade Date. No assurance can be given as to what our financial condition will be 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 required to do so. RBCCM or any of our other affiliates may stop any market-making
activities at any time. Even if a secondary market for the Notes develops, it may not provide significant liquidity or trade at prices advantageous to you. We expect that transaction costs in any secondary market would be high. As a
result, the difference between bid and asked prices for your Notes in any secondary market could be substantial.
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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 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 price of the Reference Stock, the borrowing rate we pay to issue securities of this kind, and the
inclusion in the price to the public of the underwriting discount and 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
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Fixed Coupon Barrier Notes
Royal Bank of Canada
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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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Our Business Activities May Create Conflicts of Interest — We and our affiliates expect to engage in trading activities related to the Reference Stock 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 share price of the Reference Stock, 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 the Reference Stock Issuer, 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 Stock. This research is modified from time to time without notice and may express opinions or provide
recommendations that are inconsistent with purchasing or holding the Notes. Any of these activities by us or one or more of our affiliates may affect the price of the Reference Stock, and, therefore, the market value of the Notes.
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Owning the Notes Is Not the Same as Owning the Reference Stock — The return on your Notes is unlikely to reflect the return you would realize if you actually owned
shares of the Reference Stock. For instance, you will not receive or be entitled to receive any dividend payments or other distributions on the Reference Stock 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 Reference Stock may have. Furthermore, the Reference Stock may appreciate substantially during the term of the Notes, while your potential return will be limited to the Coupon
Payments.
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There Is No Affiliation Between the Reference Stock Issuer and RBCCM, and RBCCM Is Not Responsible for any Disclosure by the Reference Stock Issuer — We are not
affiliated with the Reference Stock Issuer. However, we and our affiliates may currently, or from time to time in the future engage, in business with the Reference Stock Issuer. Nevertheless, neither we nor our affiliates assume any
responsibilities for the accuracy or the completeness of any information that any other company prepares. You, as an investor in the Notes, should make your own investigation into the Reference Stock. The Reference Stock Issuer is not
involved in this offering and has no obligation of any sort with respect to your Notes. The
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Fixed Coupon Barrier Notes
Royal Bank of Canada
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The Payments on the Notes Are Subject to Postponement Due to Market Disruption Events and Adjustments —The payment at maturity 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—Consequences of
Market Disruption Events” in the product prospectus supplement.
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Fixed Coupon Barrier Notes
Royal Bank of Canada
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Fixed Coupon Barrier Notes
Royal Bank of Canada
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Fixed Coupon Barrier Notes
Royal Bank of Canada
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Fixed Coupon Barrier Notes
Royal Bank of Canada
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Fixed Coupon Barrier Notes
Royal Bank of Canada
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Fixed Coupon Barrier Notes
Royal Bank of Canada
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