Registration Statement No. 333-275898
Filed Pursuant to Rule 433
Accelerated Return Notes® Linked to a
Basket of Three Financial Sector Stocks
| Issuer |
Royal Bank of Canada (“RBC”). References on this page to “we,” “us” or “our” mean RBC. |
| Principal Amount |
$10.00 per unit |
| Term |
Approximately 14 months |
| Market Measure |
An approximately equally weighted basket (the “Basket”) of three financial sector stocks composed of the common stocks of The Goldman Sachs Group, Inc. (NYSE symbol: “GS”), JPMorgan Chase & Co. (NYSE symbol: “JPM”) and Morgan Stanley (NYSE symbol: “MS”) (each, a “Basket Stock”). Each Basket Stock is issued by an “Underlying Company.” |
| Payout Profile at Maturity |
· 3-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, with 100% of your principal at risk |
| Capped Value |
[$11.60 to $12.00] per unit, a return of [16.00% to 20.00%] over the principal amount, to be determined on the pricing date |
| Participation Rate |
300% |
| Preliminary Offering Documents |
http://www.sec.gov/Archives/edgar/data/1000275/000095010324016958/
dp221121_424b2-mlzod.htm |
| Exchange Listing |
No |
You should read the relevant Preliminary Offering Documents before
you invest. Click on the Preliminary Offering Documents hyperlink above or call your Financial Advisor for a hard copy.
Risk Factors
Please see the Preliminary Offering Documents for a description of
certain risks related to this investment, including, but not limited to, the following:
| · | Depending on the performance of the Basket as measured shortly before the maturity date, your investment may result in a loss; there
is no guaranteed return of principal. |
| · | Your return on the notes may be less than the yield you could earn by owning a conventional fixed or floating rate debt security of
comparable maturity. |
| · | Payments on the notes are subject to our credit risk, and actual or perceived changes in our creditworthiness are expected to affect
the value of the notes. |
| · | Your investment return is limited to the return represented by the Capped Value and may be less than a comparable investment directly
in the Basket Stocks. |
| · | The initial estimated value of the notes is only an estimate, determined as of a particular point in time by reference to our and
our affiliates’ pricing models. |
| · | The public offering price you pay for the notes will exceed the initial estimated value. |
| · | The initial estimated value does not represent a minimum or maximum price at which we, MLPF&S, BofAS or any of our affiliates
would be willing to purchase your notes in any secondary market (if any exists) at any time. |
| · | A trading market is not expected to develop for the notes. |
| · | Our business, hedging and trading activities, and those of MLPF&S, BofAS and our respective affiliates (including trades in the
Basket Stocks), and any hedging and trading activities we, MLPF&S, BofAS or our respective affiliates engage in for our clients’
accounts, may affect the market value and return of the notes and may create conflicts of interest with you. |
| · | There may be potential conflicts of interest involving the calculation agent, which is BofAS. |
| · | The Underlying Companies will have no obligations relating to the notes, and none of us, MLPF&S or BofAS will perform any due
diligence procedures with respect to any Underlying Company in connection with this offering. |
| · | Changes in the price of one Basket Stock may be offset by changes in the prices of the other Basket Stocks. |
| · | You will have no rights of a holder of the Basket Stocks, and you will not be entitled to receive shares of the Basket Stocks or dividends
or other distributions by the Underlying Companies. |
| · | While we, MLPF&S, BofAS or our respective affiliates may from time to time own securities of the Underlying Companies, we, MLPF&S,
BofAS and our respective affiliates do not control any Underlying Company, and have not verified any disclosures made by any Underlying
Company. |
| · | The Redemption Amount will not be adjusted for all corporate events that could affect a Basket Stock. |
| · | The Basket is concentrated in the financial sector, and an investment in the notes involves certain risks associated with an investment
in companies in the financial sector. |
| · | The U.S. federal income tax consequences of an investment in the notes are uncertain. |
| · | The stocks included in the Basket are concentrated in one sector. |
| · | Adverse conditions in the financial sector may reduce your return on the notes. |
| · | Economic conditions have adversely impacted the stock prices of many companies in the financial services sector, and may do so during
the term of the notes. |
Final terms will be set on the pricing date within the given
range for the specified Market-Linked Investment. Please see the Preliminary Offering Documents for complete product disclosure, including
related risks and tax disclosure.
The graph above and the table below reflect
the hypothetical return on the notes, based on the terms contained in the table to the left (using the mid-point for any range(s)). The
graph and the table have been prepared for purposes of illustration only and do not take into account any tax consequences from investing
in the notes.
| Hypothetical Percentage Change from the Starting Value to the Ending Value |
Hypothetical Redemption Amount per Unit |
Hypothetical Total Rate of Return on the Notes |
| -100.00% |
$0.00 |
-100.00% |
| -50.00% |
$5.00 |
-50.00% |
| -20.00% |
$8.00 |
-20.00% |
| -10.00% |
$9.00 |
-10.00% |
| -6.00% |
$9.40 |
-6.00% |
| -3.00% |
$9.70 |
-3.00% |
| 0.00% |
$10.00 |
0.00% |
| 2.00% |
$10.60 |
6.00% |
| 3.00% |
$10.90 |
9.00% |
| 6.00% |
$11.80(1) |
18.00% |
| 10.00% |
$11.80 |
18.00% |
| 20.00% |
$11.80 |
18.00% |
| 50.00% |
$11.80 |
18.00% |
| 100.00% |
$11.80 |
18.00% |
| (1) | The Redemption Amount per unit cannot exceed the hypothetical Capped Value. |