CAPPED LEVERAGED INDEX RETURN NOTES® (LIRNs®)
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Issuer
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Royal Bank of Canada (“RBC”)
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Principal
Amount
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$10.00 per unit
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Term
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Approximately two years
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Market
Measure
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The Russell 2000® Index (Bloomberg symbol: “RTY”)
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Payout Profile
at Maturity
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• 2-to-1 upside exposure to increases in the
Market Measure, subject to the Capped Value
• 1-to-1 downside exposure to decreases in the
Market Measure beyond a 10.00% decline, with up to 90.00% of your principal at risk
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Capped Value
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[$12.075 to $12.475] per unit, a [20.75% to 24.75%] return over the principal amount, to be determined on the pricing date.
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Participation
Rate
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200.00%
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Threshold
Value
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90% of the Starting Value of the Market Measure
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Interest
Payments:
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None
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Preliminary
Offering
Documents
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Exchange
Listing
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No
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•
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Depending on the performance of the Market Measure as measured shortly before the maturity date, your investment may result in a loss; there is no guaranteed return of principal.
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•
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Payments on the notes, including repayment of principal, are subject to the credit risk of RBC. If RBC becomes insolvent or is unable to pay its obligations, you may lose your entire investment.
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Your investment return, if any, is limited to the return represented by the Capped Value and may be less than a comparable investment directly in the stocks included in the Market Measure.
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The initial estimated value of the notes on the pricing date will be less than their public offering price.
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If you attempt to sell the notes prior to maturity, their market value may be lower than both the public offering price and the initial estimated value of the notes on the pricing date.
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You will have no rights of a holder of the securities represented by the Market Measure, and you will not be entitled to receive securities or dividends or other distributions by the issuers of those
securities.
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RBC, MLPF&S, BofAS and their respective affiliates do not control any company included in the Market Measure, and have not verified any disclosure made by any other company.
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An investment in the notes will involve risks associated with investments that are linked to the equity securities of issuers with a small market capitalization.
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Hypothetical
Percentage Change
from the Starting Value
to the Ending Value
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Hypothetical
Redemption Amount
per Unit
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Hypothetical Total Rate of
Return on the Notes
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-100.00%
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$1.00
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-90.00%
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-50.00%
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$6.00
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-40.00%
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-20.00%
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$9.00
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-10.00%
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-10.00%(1)
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$10.00
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0.00%
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-6.00%
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$10.00
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0.00%
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-3.00%
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$10.00
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0.00%
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0.00%
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$10.00
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0.00%
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1.00%
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$10.20
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2.00%
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2.00%
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$10.40
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4.00%
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5.00%
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$11.00
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10.00%
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10.00%
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$12.00
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20.00%
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11.375%
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$12.275(2)
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22.75%
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20.00%
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$12.275
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22.75%
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30.00%
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$12.275
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22.75%
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40.00%
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$12.275
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22.75%
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50.00%
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$12.275
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22.75%
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60.00%
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$12.275
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22.75%
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(1)
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This hypothetical percentage change corresponds to the Threshold Value.
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(2)
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The Redemption Amount per unit cannot exceed the hypothetical Capped Value.
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