Registration
Statement No. 333-275898
Filed
Pursuant to Rule 433
| ACCELERATED RETURN NOTES® (ARNs®) |
|
| Accelerated Return Notes®
Linked to the iShares® U.S. Aerospace & Defense ETF |
| 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 |
The iShares® U.S. Aerospace & Defense
ETF (Bloomberg symbol: “ITA”) |
| 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 |
[$11.55 to $11.95] per unit, a return of [15.50% to 19.50%]
over the principal amount, to be determined on the pricing date |
| Participation
Rate |
300% |
| Preliminary
Offering Documents |
https://www.sec.gov/Archives/edgar/data/1000275/000095010326007691/dp247133_424b2-mlbna.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 Market Measure 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 shares of the Market Measure or the securities held
by the Market Measure. |
| · | 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 shares of the Market Measure or the securities held by the
Market Measure), 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
sponsor and advisor of the Market Measure may adjust the Market Measure in a way that could
adversely affect the value of the notes and the amount payable on the notes, and these entities
have no obligation to consider your interests. |
| · | You
will have no rights of a holder of shares of the Market Measure or the securities held by
the Market Measure, and you will not be entitled to receive securities or dividends or other
distributions by the issuers of those securities. |
| · | While
we, MLPF&S, BofAS or our respective affiliates may from time to time own shares of the
Market Measure or the securities held by the Market Measure, we, MLPF&S, BofAS and our
respective affiliates do not control the Market Measure or the issuers of those securities,
and have not verified any disclosure made by any other company. |
| · | There
are liquidity and management risks associated with the Market Measure. |
| · | The
performance of the Market Measure may not correlate with the performance of the securities
held by the Market Measure as well as the net asset value per share of the Market Measure,
especially during periods of market volatility when the liquidity and the market price of
shares of the Market Measure and/or the securities held by the Market Measure may be adversely
affected, sometimes materially. |
| · | The
payments on the notes will not be adjusted for all corporate events that could affect the
Market Measure. |
| · | The
U.S. federal income tax consequences of an investment in the notes are uncertain. |
| · | The
securities held by the Market Measure are concentrated in one sector. |
| · | A
limited number of stocks held by the Market Measure may affect its price, and the stocks
held by the Market Measure are not necessarily representative of the aerospace and defense
sector. |
| · | Adverse
conditions in the aerospace and defense sector may reduce your return on 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% |
| 5.00% |
$11.50 |
15.00% |
| 5.84% |
$11.75(1) |
17.50% |
| 10.00% |
$11.75 |
17.50% |
| 20.00% |
$11.75 |
17.50% |
| 30.00% |
$11.75 |
17.50% |
| 50.00% |
$11.75 |
17.50% |
| 100.00% |
$11.75 |
17.50% |
| (1) | The Redemption Amount
per unit cannot exceed the hypothetical Capped Value. |
RBC has filed a registration
statement (including a product supplement, a prospectus supplement and a prospectus) with the SEC for the offering to which this document
relates. Before you invest, you should read those documents, and the other documents that RBC has filed with the SEC, for more complete
information about RBC and this offering. You may get these documents without cost by visiting EDGAR on the SEC website at www.sec.gov.
Alternatively, RBC, any agent, or any dealer participating in this offering will arrange to send you these documents if you so request
by calling toll-free 1-800-294-1322.
