Filed Pursuant to Rule 424(b)(2)
Registration Statement No. 333-275898
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Pricing Supplement
Dated May 14, 2024
To the Product Prospectus Supplement FI-BARR-1, the Prospectus Supplement and the Prospectus, Each Dated
December 20, 2023
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$2,837,000
Auto-Callable Fixed Coupon Barrier Notes
Linked to the Common Stock of NVIDIA Corporation,
Due June 20, 2025
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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May 14, 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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May 17, 2024
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Maturity Date:
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June 20, 2025
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Coupon Payment:
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14.50% per annum.
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Coupon Payment Dates:
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Monthly, as set forth below, unless the Notes are previously called.
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Initial Stock Price:
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$913.56, which was the closing price of the
Reference Stock on the Trade Date.
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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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Barrier Price:
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$584.68, which is 64.00% of the Initial Stock Price (rounded to two decimal places).
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Payment at Maturity
(if held to maturity):
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If the Notes are not previously called, we will pay an amount at maturity based on the Final Stock Price. 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, instead of the principal amount, in addition to accrued and unpaid
interest, for each $1,000 in principal amount, the number of shares of the Reference Stock equal to the Physical Delivery Amount, or under the circumstances described below, the cash value of those shares.
Investors will lose some or all of their principal amount if the Final Stock Price is less than the Barrier Price.
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Physical Delivery
Amount: |
For each $1,000 in principal amount, 1.09 shares of the Reference Stock, which is equal to $1,000 divided by the Initial Stock Price (rounded to two decimal places),
subject to adjustment as described in the product prospectus supplement.
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Call Feature:
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If the closing price of the Reference Stock is greater than or equal to the Initial Stock Price starting on November 14, 2024 or on any monthly Call Observation Date
thereafter, the Notes will be automatically called for 100% of their principal amount, plus the coupon applicable to the corresponding Call Observation Date.
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Monitoring Period:
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The Valuation Date.
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CUSIP:
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78015QJW2
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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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$2,837,000.00
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Underwriting discounts and commissions(1)
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1.50%
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$42,555.00
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Proceeds to Royal Bank of Canada
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98.50%
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$2,794,445.00
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Auto-Callable Fixed Coupon Barrier Notes
Royal Bank of Canada |
General:
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This pricing supplement relates to an offering of Auto-Callable Fixed Coupon Barrier Notes (the “Notes”) linked to the common stock (the “Reference Stock”) of NVIDIA Corporation (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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May 14, 2024
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Issue Date:
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May 17, 2024
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Valuation Date:
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June 16, 2025
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Maturity Date:
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June 20, 2025, subject to extension for market and other disruptions, as described in the product prospectus supplement dated December 20, 2023.
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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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14.50% per annum. Each coupon will be paid in equal monthly payments of approximately 1.2083% of the principal amount on the applicable Coupon Payment Date, unless the Notes are
previously called.
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Call Observation
Dates and Coupon
Payment Dates:
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Monthly, as set forth below:
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Call Observation Dates
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Coupon Payment Dates
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June 20, 2024
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July 18, 2024
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August 19, 2024
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September 19, 2024
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October 17, 2024
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November 14, 2024
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November 19, 2024(1)
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December 16, 2024
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December 19, 2024(1)
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January 14, 2025
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January 17, 2025(1)
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February 14, 2025
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February 20, 2025(1)
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March 14, 2025
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March 19, 2025(1)
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April 14, 2025
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April 17, 2025(1)
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May 14, 2025
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May 19, 2025(1)
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June 16, 2025 (the Valuation Date)
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June 20, 2025 (the Maturity Date)
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(1) This Coupon Payment Date is also a Call Settlement 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 or upon an
automatic call will be payable to the person to whom the Payment at Maturity or upon that call, as the case may be, is payable.
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Call Feature:
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If, starting on November 14, 2024 or on any monthly Call Observation Date thereafter, the closing price of the Reference Stock is greater than or equal to the Initial Stock Price, then
the Notes will be automatically called.
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Call Settlement
Dates:
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If the Notes are called on any Call Observation Date, the Call Settlement Date will be the Coupon Payment Date corresponding to that Call Observation Date. The Call Settlement Dates are set forth in the
table above.
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Auto-Callable Fixed Coupon Barrier Notes
Royal Bank of Canada |
Payment if Called:
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If the Notes are automatically called, then, on the applicable Call Settlement Date, for each $1,000 in principal amount, you will receive $1,000 plus the Coupon otherwise due on that
Call Settlement Date.
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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 pricing supplement.
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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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Barrier Price:
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64% of the Initial Stock Price, as set forth on the cover page of this pricing supplement.
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Payment at
Maturity (if
the Notes are not
previously called
and are
held to maturity):
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If the Notes are not previously called, then for each $1,000 in principal amount of the Notes, the investor will receive $1,000 plus any accrued and unpaid interest at maturity, 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, in addition to accrued and unpaid interest, for each $1,000 in principal amount
of the Notes, the number of shares of the Reference Stock equal to the Physical Delivery Amount, or under the circumstances described below, the Cash Delivery Amount. If we elect to deliver shares of the Reference Stock, fractional
shares will be paid in cash.
The value of the shares or cash that you would 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 Stock Price is less than the Barrier Price.
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Physical Delivery
Amount:
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For each $1,000 in principal amount, a number of shares of the Reference Stock equal to the principal amount divided by the Initial Stock Price as set forth on the cover page of this
pricing supplement, subject to adjustment as described in the product prospectus supplement. Fractional shares will be paid in cash.
If, due to an event beyond our control, we determine it is impossible, impracticable (including unduly burdensome) or illegal for us to deliver shares of the Reference Stock to you at
maturity, we will pay the Cash Delivery Amount in lieu of delivering shares.
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Cash Delivery
Amount:
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The product of the Physical Delivery Amount multiplied by the Final Stock Price.
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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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Calculation Agent:
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RBC Capital Markets, LLC (“RBCCM”)
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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 Ashurst LLP, our special U.S. tax counsel) 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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Auto-Callable Fixed Coupon Barrier Notes
Royal Bank of Canada |
Listing:
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The Notes will not be listed on any securities exchange.
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Clearance and
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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Auto-Callable Fixed Coupon Barrier Notes
Royal Bank of Canada |
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Auto-Callable Fixed Coupon Barrier Notes
Royal Bank of Canada |
Hypothetical
Final Stock
Price |
Payment at Maturity as Percentage of Principal
Amount
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Physical Delivery Amount
as Number of Shares of
the Reference Stock |
Cash
Delivery
Amount
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$150.00
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100.00%
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n/a
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n/a
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$125.00
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100.00%
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n/a
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n/a
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$100.00
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100.00%
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n/a
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n/a
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$90.00
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100.00%
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n/a
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n/a
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$80.00
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100.00%
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n/a
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n/a
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$70.00
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100.00%
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n/a
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n/a
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$64.00
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100.00%
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n/a
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n/a
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$63.99
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Physical Delivery Amount or Cash Settlement Amount
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10
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$639.90
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$60.00
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Physical Delivery Amount or Cash Settlement Amount
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10
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$600.00
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$50.00
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Physical Delivery Amount or Cash Settlement Amount
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10
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$500.00
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$40.00
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Physical Delivery Amount or Cash Settlement Amount
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10
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$400.00
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$30.00
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Physical Delivery Amount or Cash Settlement Amount
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10
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$300.00
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$20.00
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Physical Delivery Amount or Cash Settlement Amount
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10
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$200.00
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$0.00
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Physical Delivery Amount or Cash Settlement Amount
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10
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$0.00
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Auto-Callable Fixed Coupon Barrier Notes
Royal Bank of Canada |
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Auto-Callable 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 Notes are not automatically called and the Final Stock Price is
less than the Barrier Price, the value of the shares or 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. If we deliver shares of the Reference Stock to you, they may further decline in value between the Valuation Date and the Maturity Date. The Coupons received on the Notes on or prior to the
Maturity Date may not be sufficient to compensate for any such loss.
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The Notes Are Subject to an Automatic Call — If on any Call Observation Date, beginning in November 2024, the
closing price of the Reference Stock is greater than or equal to the Initial Stock Price, then the Notes will be automatically called. If the Notes are automatically called, then, on the applicable Call Settlement Date, for each
$1,000 in principal amount, you will receive $1,000 plus the Coupon otherwise due on the applicable Call Settlement Date. You will not receive any Coupons after the Call Settlement Date. You may be unable to reinvest your proceeds
from the automatic call in an investment with a return that is as high as the return on the Notes would have been if they had not been called.
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The Coupon Rate and the Call Feature Limit Your Potential Return — The return potential of the Notes is limited to the pre-specified Coupon Rate, regardless of the
appreciation of the Reference Stock. In addition, if the Notes are called due to the call, you will not receive any Coupon Payments after the applicable Coupon Payment Date. Since the Notes could be called as early as November 2024,
the total return on the Notes could be limited. As a result, the return on an investment in the Notes could be less than the return on a direct investment in 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 ask prices for your Notes in any secondary market could be substantial.
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Auto-Callable Fixed Coupon Barrier Notes
Royal Bank of Canada |
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The Initial Estimated Value of the Notes Is Less than the Price to the Public — The initial estimated value of the
Notes 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, the referral fee 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 original
purchase price, as any such sale price would not be expected to include the underwriting discount, the referral fee or the hedging costs relating to the Notes. In addition to bid-ask spreads, the value of the Notes determined by
RBCCM for any secondary market price is expected to be based on the secondary rate rather than the internal funding rate used to price the Notes and determine the initial estimated value. As a result, the secondary price will be
less than if the internal funding rate was used. The Notes are not designed to be short-term trading instruments. Accordingly, you should be able and willing to hold your Notes to maturity.
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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 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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You Must Rely on Your Own Evaluation of the Merits of an Investment Linked to the Reference Stock — In the ordinary course of their business, our affiliates may have
expressed views on expected movements in the Reference Stock, and may do so in the future. These views or reports may be communicated to our clients and clients of our affiliates. However, these views are subject to change from time
to time. Moreover, other professionals who transact
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Auto-Callable Fixed Coupon Barrier Notes
Royal Bank of Canada |
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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 Reference Stock Issuer has no obligation to take your interests into consideration for
any reason, including when taking any corporate actions that might affect the value of your Notes.
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The Payments on the Notes Are Subject to Postponement Due to Market Disruption Events and Adjustments — The Payment
at Maturity, each Call Observation Date 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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Auto-Callable Fixed Coupon Barrier Notes
Royal Bank of Canada |
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Auto-Callable Fixed Coupon Barrier Notes
Royal Bank of Canada |
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Auto-Callable Fixed Coupon Barrier Notes
Royal Bank of Canada |
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Auto-Callable Fixed Coupon Barrier Notes
Royal Bank of Canada |
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Auto-Callable Fixed Coupon Barrier Notes
Royal Bank of Canada |
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Auto-Callable Fixed Coupon Barrier Notes
Royal Bank of Canada |