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Royal Bank of Canada Market Linked Securities |
Filed Pursuant to Rule 433 Registration Statement No. 333-275898
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Market Linked Securities—Auto-Callable with Leveraged Upside Participation and Contingent Downside Principal at Risk Securities Linked to a Stock Basket due February 25, 2028 Term Sheet dated February 7, 2025 |
Summary of Terms
| Issuer: | Royal Bank of Canada |
| Basket: | An equally weighted basket (the “Basket”) consisting of the common stock of Bank of America Corporation (the “BAC Stock”) (25%), the common stock of Citigroup Inc. (the “C Stock”) (25%), the common stock of The Goldman Sachs Group, Inc. (the “GS Stock”) (25%) and the common stock of Morgan Stanley (the “MS Stock”) (25%) (each, a “basket component”) |
| Pricing Date: | February 21, 2025 |
| Issue Date: | February 26, 2025 |
| Calculation Day: | February 22, 2028 |
| Stated Maturity Date: | February 25, 2028 |
| Face Amount: | $1,000 per security |
| Automatic Call: | If the basket closing level on the call date is greater than or equal to the starting level, the securities will be automatically called, and on the call settlement date, you will be entitled to receive a cash payment per security in U.S. dollars equal to the face amount plus the call premium. |
| Call Premium: | At least 12.50% of the face amount (to be determined on the pricing date) |
| Call Date: | March 6, 2026 |
| Call Settlement Date: | Three business days after the call date |
| Maturity Payment Amount, if the Securities Are Not Automatically Called (per security): |
· if the ending level is greater than the starting level: $1,000 + ($1,000 × basket return on the calculation day × upside participation rate); · if the ending level is less than or equal to the starting level, but greater than or equal to the threshold level: $1,000; or · if the ending level is less than the threshold level: $1,000 + ($1,000 × basket return on the calculation day) |
| Threshold Level: | 75.00, which is equal to 75% of the starting level |
| Upside Participation Rate: | 150% |
| Basket Return: | For the call date or the calculation day: (basket closing level on that day – starting level) / starting level |
| Starting Level: | Set equal to 100 on the pricing date |
| Basket Closing Level: | For the call date or the calculation day: 100 × [1 + (the sum of, for each basket component, its component return on that day times its basket weighting)] |
| Ending Level: | The basket closing level on the calculation day |
| Component Return: | For the call date or the calculation day and with respect to each basket component: (closing value of the basket component on that day – initial component value) / initial component value |
| Initial Component Value: | With respect to each basket component, the closing value of that basket component on the pricing date |
| 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 2.575%; dealers, including those using the trade name Wells Fargo Advisors (“WFA”), may receive a selling concession of up to 2.00% and WFA may receive a distribution expense fee of 0.075%. In addition, selected dealers may receive a fee of up to 0.30% for marketing and other services |
| CUSIP: | 78017KRD6 |
Hypothetical Payout Profile*
* Assumes a call premium equal to the lowest possible call premium that may be determined on the pricing date
If the securities are automatically called, the positive return on the securities will be limited to the call premium, and you will not participate in any appreciation of the Basket on the call date, which may be significant. If the securities are automatically called, you will no longer have the opportunity to participate in any appreciation of the Basket at the upside participation rate.
If the securities are not automatically called prior to stated maturity and the ending level is less than the threshold level, you will have full downside exposure to the decrease in the value of the Basket from the starting level, and you will lose more than 25%, and possibly all, of the face amount of your securities at maturity.
The issuer’s initial estimated value of the securities as of the pricing date is expected to be between $908.00 and $958.00 per $1,000 in principal amount, which is less than the public offering price. The final pricing supplement relating to the securities will set forth the issuer’s estimate of the initial value of the securities as of the pricing date. The market value of the securities at any time will reflect many factors, cannot be predicted with accuracy, and may be less than this amount. See “Estimated Value of the Securities” in the accompanying preliminary pricing supplement for further information.
Preliminary Pricing Supplement:
https://www.sec.gov/Archives/edgar/data/1000275/000095010325001761/dp224705_424b2-wfceln299bskt.htm
The securities have complex features and investing in the securities 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 securities.
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 Securities
| · | If The Securities Are Not Automatically Called Prior To Stated Maturity And The Ending Level Is Less Than The Threshold Level, You Will Lose More Than 25%, And Possibly All, Of The Face Amount Of Your Securities At Stated Maturity. |
| · | If The Securities Are Automatically Called, Your Return Will Be Limited To The Call Premium. |
| · | The Securities Do Not Pay Interest, And Your Return On The Securities May Be Lower Than The Return On A Conventional Debt Security Of Comparable Maturity. |
| · | Changes In The Value Of One Basket Component May Be Offset By Changes In The Values Of The Other Basket Components. |
| · | You Will Be Subject To Reinvestment Risk. |
| · | Payments On The Securities Are Subject To Our Credit Risk, And Market Perceptions About Our Creditworthiness May Adversely Affect The Market Value Of The Securities. |
| · | The Call Settlement Date Or The Stated Maturity Date May Be Postponed If The Call Date Or The Calculation Day Is Postponed. |
| · | The U.S. Federal Income Tax Consequences Of An Investment In The Securities Are Uncertain. |
Risks Relating To The Estimated Value Of The Securities And Any Secondary Market
| · | There May Not Be An Active Trading Market For The Securities And Sales In The Secondary Market May Result In Significant Losses. |
| · | The Initial Estimated Value Of The Securities Will Be Less Than The Original Offering Price. |
| · | The Initial Estimated Value Of The Securities Is Only An Estimate, Calculated As Of The Time The Terms Of The Securities Are Set. |
| · | The Value Of The Securities Prior To Stated Maturity Will Be Affected By Numerous Factors, Some Of Which Are Related In Complex Ways. |
Risks Relating To Conflicts Of Interest
| · | Our Economic Interests And Those Of Any Dealer Participating In The Offering Are Potentially Adverse To Your Interests. |
Risks Relating To The Basket Components
| · | Investing In The Securities Is Not The Same As Investing In The Basket Components. |
| · | Historical Values Of A Basket Component Should Not Be Taken As An Indication Of The Future Performance Of That Basket Component During The Term Of The Securities. |
| · | The Securities May Become Linked To The Common Stock Of A Company Other Than The Original Basket Component Issuers. |
| · | We Cannot Control Actions By The Basket Component Issuers. |
| · | We And Our Affiliates Have No Affiliation With Any Basket Component Issuer And Have Not Independently Verified Its Public Disclosure Of Information. |
| · | You Have Limited Anti-dilution Protection. |
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.
As used in this term sheet, “Royal Bank of Canada,” “we,” “our” and “us” mean only Royal Bank of Canada. 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.