Bond Royal Bank of Canada 0% ( US78015KJS42 ) in USD

Royal Bank of Canada

110.07 % ⇌

Canada

US78015KJS42 ( in USD )

30/12/2024 - Bond has expired

Prospectus brochure of the bond Royal Bank of Canada US78015KJS42 in USD 0%, expired

1 000 USD

6 331 000 USD

78015KJS4

N/A

The Royal Bank of Canada (RBC) is a Canadian multinational financial services company offering personal and commercial banking, wealth management, insurance, and investment banking services globally.

The Bond issued by Royal Bank of Canada ( Canada ) , in USD, with the ISIN code US78015KJS42, pays a coupon of 0% per year.
The coupons are paid 2 times per year and the Bond maturity is 30/12/2024

424B2 1 form424b2.htm EEM UKX, 78015KJS4
RBC Ca pit a l M a rk e t s®
File d Pursua nt t o Rule 4 2 4 (b)(2 )
Re gist ra t ion St a t e m e nt N o. 3 3 3 -2 2 7 0 0 1

Pricing Supplement

$6,331,000
Dated December 24, 2019
Auto-Callable Barrier Notes
To the Product Prospectus Supplement ERN-ETF-1 Dated
Linked to the Lesser Performing of One Exchange
September 11, 2018, the Prospectus Supplement Dated
Traded Fund and One Equity Index, Due December
September 7, 2018, and the Prospectus Dated
30, 2024
September 7, 2018
Royal Bank of Canada

Royal Bank of Canada is offering Auto-Callable Barrier Notes (the "Notes") linked to the lesser performing of one exchange traded fund and one equity
index (each, a "Reference Asset" and collectively, the "Reference Assets"). The Notes are our senior unsecured obligations, and will have the terms
described in the documents described above, as supplemented or modified by this pricing supplement. We will not make any payments on the Notes until
the maturity date or a prior automatic call. The Notes do not guarantee any return of principal at maturity. Any payments on the Notes are subject to our
credit risk.
The Notes will be automatically called at the applicable Call Amount if the closing level of each Reference Asset is greater than or equal to the applicable
Call Level on any quarterly Observation Date beginning in June 2020. The Call Amounts are based on a rate of return of 10.00% per annum (2.50% per
quarter), and will increase on each quarterly Observation Date to reflect that rate of return. If the Notes are not called, you may lose all or a substantial
portion of your principal amount.
Re fe re nc e Asse t s
Initial Levels
Ba rrie r Le ve ls*
iShares® MSCI Emerging Markets ETF ("EEM")

$44.57

$31.20, which is 70.00% of its Initial Level
FTSE® 100 Index ("UKX")

7,632.24

5,342.57, which is 70.00% of its Initial Level
* Rounded to two decimal places.
Investing in the Notes involves a number of risks. See "Selected Risk Considerations" beginning on page P-8 of this pricing supplement, "Additional Risk
Factors Specific to the Notes" beginning on page PS-6 of the product prospectus supplement dated September 11, 2018, and "Risk Factors" beginning on
page S-1 of the prospectus supplement dated September 7, 2018.
The Notes will not constitute deposits insured by the Canada Deposit Insurance Corporation, the U.S. Federal Deposit Insurance Corporation or any other
Canadian or U.S. government agency or instrumentality. The Notes are not subject to conversion into our common shares under subsection 39.2(2.3) of the
Canada Deposit Insurance Corporation Act. Neither the Securities and Exchange Commission nor any state securities commission has approved or
disapproved of the Notes or determined that this pricing supplement is truthful or complete. Any representation to the contrary is a criminal offense.
I ssue r:
Royal Bank of Canada
St oc k Ex c ha nge List ing:
None
T ra de Da t e :
December 24, 2019
Princ ipa l Am ount :
$1,000 per Note
I ssue Da t e :
December 30, 2019
M a t urit y Da t e :
December 30, 2024
V a lua t ion Da t e :
December 24, 2024

Fina l Le ve l:
For each Reference Asset, its closing price or closing level, as applicable, on the Valuation Date.
Ca ll Fe a t ure :
If the closing price or the closing level, as applicable, of each Reference Asset is greater than or equal to its Call Level starting in June 2020
or on any Observation Date thereafter, the Notes will be called and we will pay the applicable Call Amount on the corresponding Call

Settlement Date.
Ca ll Le ve l:
100% of the applicable Initial Level for each Observation Date until March 2021, and thereafter, 95% of the applicable Initial Level.
Obse rva t ion Da t e s a nd Quarterly, beginning in June 2020, as set forth below.
Ca ll Se t t le m e nt Da t e s:
Pa ym e nt a t M a t urit y (if If the Notes are not called on any Observation Date (including the Valuation Date), we will pay you at maturity an amount based on the Final
he ld t o m a t urit y):
Level of the Lesser Performing Reference Asset:
For each $1,000 in principal amount, $1,000, unless the Final Level of the Lesser Performing Reference Asset is less than its Barrier Level.

If the Final Level of the Lesser Performing Reference Asset is less than its Barrier Level, then the investor will receive at maturity, for each
$1,000 in principal amount, a cash payment equal to:
$1,000 + ($1,000 x Percentage Change of the Lesser Performing Reference Asset)
Investors could lose some or all of the principal amount if there is a decline in the value of Lesser Performing Reference Asset below its
Barrier Level.
Le sse r Pe rform ing
The Reference Asset which has the lowest Percentage Change.
Re fe re nc e Asse t :
CU SI P:
78015KJS4

Per Note

Total
Price to public(1)
100.00%
$6,331,000.00
Underwriting discounts and commissions(1)
2.75%

$174,102.50
https://www.sec.gov/Archives/edgar/data/1000275/000114036119023300/form424b2.htm[12/27/2019 11:39:22 AM]

Proceeds to Royal Bank of Canada
97.25%

$6,156,897.50
(1)Certain dealers who purchased the Notes for sale to certain fee-based advisory accounts may have foregone some or all of their underwriting discount or selling
concessions. The public offering price for investors purchasing the Notes in these accounts was between $972.50 and $1,000 per $1,000 in principal amount.
The initial estimated value of the Notes as of the Trade Date is $976.05 per $1,000 in principal amount, which is less than the price to public. The actual value of the
Notes at any time will reflect many factors, cannot be predicted with accuracy, and may be less than this amount. We describe our determination of the initial estimated
value in more detail below.
RBC Capital Markets, LLC, which we refer to as RBCCM, acting as our agent, will receive a commission of $27.50 per $1,000 in principal amount of the Notes and will
use a portion of that commission to allow selling concessions to other dealers of up to $27.50 per $1,000 in principal amount of the Notes. The other dealers may forgo, in
their sole discretion, some or all of their selling concessions. See "Supplemental Plan of Distribution (Conflicts of Interest)" below.
RBC Capital Markets, LLC

Auto-Callable Barrier Notes
Royal Bank of Canada

SU M M ARY
The information in this "Summary" section is qualified by the more detailed information set forth in this pricing supplement, the
product prospectus supplement, the prospectus supplement, and the prospectus.
General:
This pricing supplement relates to an offering of Auto-Callable Barrier Notes (the "Notes") linked to the
lesser performing of one exchange traded fund and one equity index (the "Reference Assets").
Issuer:
Royal Bank of Canada ("Royal Bank")
Trade Date (Pricing
December 24, 2019
Date):
Issue Date:
December 30, 2019
Denominations:
Minimum denomination of $1,000, and integral multiples of $1,000 thereafter.
Designated Currency:
U.S. Dollars
Call Feature:
If, on any Observation Date, the closing level or closing price, as applicable, of each Reference Asset is
greater than or equal to its Call Level, then the Notes will be automatically called and the applicable Call
Amount will be paid on the corresponding Call Settlement Date.
Call Level:
100% of the applicable Initial Level until the Observation Date occurring in March 2021, and 95% of the
applicable Initial Level thereafter.
Call Return Rate:
10% per annum
Observation
Obse rva t ion Da t e
Ca ll Se t t le m e nt Da t e
Ca ll Am ount s
Dates/Call Settlement
June 24, 2020
June 29, 2020
105.00%
Dates/Call Amounts:
September 24, 2020
September 29, 2020
107.50%

December 24, 2020
December 30, 2020
110.00%
March 24, 2021
March 29, 2021
112.50%
June 24, 2021
June 29, 2021
115.00%
September 24, 2021
September 29, 2021
117.50%
December 29, 2021
January 3, 2022
120.00%
March 24, 2022
March 29, 2022
122.50%
June 24, 2022
June 29, 2022
125.00%
September 26, 2022
September 29, 2022
127.50%
December 28, 2022
January 3, 2023
130.00%
March 24, 2023
March 29, 2023
132.50%
June 26, 2023
June 29, 2023
135.00%
September 25, 2023
September 28, 2023
137.50%
December 27, 2023
January 2, 2024
140.00%
March 25, 2024
March 28, 2024
142.50%
June 24, 2024
June 27, 2024
145.00%
September 24, 2024
September 27, 2024
147.50%
December 24, 2024 (the "Valuation
December 30, 2024 (the
150.00%
Date")
"Maturity Date")
https://www.sec.gov/Archives/edgar/data/1000275/000114036119023300/form424b2.htm[12/27/2019 11:39:22 AM]

The Call Amounts correspond to a return of 10.00% per annum (2.50% per quarter) on the Notes, if they
are called. Accordingly, you will not receive any return on the Notes that exceeds the applicable amount
set forth above, even if the value of one or more of the Reference Assets increases substantially.
Valuation Date:
December 24, 2024
Maturity Date:
December 30, 2024
Initial Level:
For each Reference Asset, its closing price or closing level, as applicable, as set forth on the cover page
of this pricing supplement.
P-2
RBC Capital Markets, LLC

Auto-Callable Barrier Notes
Royal Bank of Canada

Final Level:
For each Reference Asset, its closing price or closing level, as applicable, on the Valuation
Date.
Barrier Level:
For each Reference Asset, 70.00% of its Initial Level, as set forth on the cover page of this pricing
supplement.
Payment at Maturity (if
If the Notes are not called on any Observation Date (including the Valuation Date), we will pay you at
not previously called
maturity an amount based on the Final Level of the Lesser Performing Reference Asset:
and held to maturity):
·

If the Final Level of the Lesser Performing Reference Asset is greater than or equal to its
Barrier Level, we will pay you a cash payment equal to the principal amount.
· If the Final Level of the Lesser Performing Reference Asset is less than its Barrier Level, you
will receive at maturity, for each $1,000 in principal amount, a cash payment equal to:
$1,000 + ($1,000 x Percentage Change of the Lesser Performing Reference Asset)
In this case, the amount of cash that you receive will be less than your principal amount, if anything,
resulting in a loss that is proportionate to the decline of the Lesser Performing Reference Asset from the
Trade Date to the Valuation Date. Investors in the Notes could lose some or all of their investment if the
Final Level of the Lesser Performing Reference Asset is less than its Barrier Level.
Percentage Change:
With respect to each Reference Asset:
Final Level Initial Level
Initial Level
Lesser Performing
The Reference Asset which has the lowest Percentage Change.
Reference Asset:

Market Disruption
If a market disruption event (or a non-trading day) occurs on an Observation Date as to a Reference
Events:
Asset, the determination of its closing level or closing price will be postponed, as described in the
product prospectus supplement. However, the determination of the closing price or closing level of any
Reference Asset that is not affected by that market disruption event will not be postponed. If an
Observation Date is so postponed, any payment on the Notes may be postponed by the same number of
business days.
Calculation Agent:
RBC Capital Markets, LLC ("RBCCM")
U.S. Tax Treatment:
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 Note as a callable pre-paid cash-
settled derivative contract in respect of the Reference Assets for U.S. federal income tax purposes.
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 our counsel Morrison & Foerster LLP) in the product prospectus
supplement dated September 11, 2018 under "Supplemental Discussion of U.S. Federal Income
Tax Consequences," which apply to the Notes.
Secondary Market:
RBCCM (or one of its affiliates), though not obligated to do so, may maintain a secondary market in
https://www.sec.gov/Archives/edgar/data/1000275/000114036119023300/form424b2.htm[12/27/2019 11:39:22 AM]

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.
Listing:
The Notes will not be listed on any securities exchange.
Settlement:
DTC global (including through its indirect participants Euroclear and Clearstream, Luxembourg as
described under "Description of Debt Securities--Ownership and Book-Entry Issuance" in the
prospectus dated September 7, 2018).
P-3
RBC Capital Markets, LLC

Auto-Callable Barrier Notes
Royal Bank of Canada

Terms Incorporated in
All of the terms appearing above the item captioned "Secondary Market" on the cover page and
the Master Note:
pages P-2 and P-3 of this pricing supplement and the terms appearing under the caption

"General Terms of the Notes" in the product prospectus supplement dated September 11, 2018,
as modified by this pricing supplement.
P-4
RBC Capital Markets, LLC

Auto-Callable Barrier Notes
Royal Bank of Canada

ADDI T I ON AL T ERM S OF Y OU R N OT ES
You should read this pricing supplement together with the prospectus dated September 7, 2018, as supplemented by the prospectus
supplement dated September 7, 2018 and the product prospectus supplement dated September 11, 2018, relating to our Senior Global Medium-
Term Notes, Series H, of which these Notes are a part. Capitalized terms used but not defined in this pricing supplement will have the meanings
given to them in the product prospectus supplement. In the event of any conflict, this pricing supplement will control. The Notes vary from the
terms described in the product prospectus supplement in several important ways. You should read this pricing supplement carefully,
including "Additional Terms Related to the UKX" below.
This pricing supplement, together with the documents listed below, contains the terms of the Notes and supersedes all prior or
contemporaneous oral statements as well as any other written materials including preliminary or indicative pricing terms, correspondence, trade
ideas, structures for implementation, sample structures, brochures or other educational materials of ours. You should carefully consider, among
other things, the matters set forth in "Risk Factors" in the prospectus supplement dated September 7, 2018 and "Additional Risk Factors Specific
to the Notes" in the product prospectus supplement dated September 11, 2018, as the Notes involve risks not associated with conventional debt
securities. We urge you to consult your investment, legal, tax, accounting and other advisors before you invest in the Notes. You may access
these documents on the Securities and Exchange Commission (the "SEC") website at www.sec.gov as follows (or if that address has changed,
by reviewing our filings for the relevant date on the SEC website):
Prospectus dated September 7, 2018:
https://www.sec.gov/Archives/edgar/data/1000275/000121465918005973/l96181424b3.htm
Prospectus Supplement dated September 7, 2018:
https://www.sec.gov/Archives/edgar/data/1000275/000121465918005975/f97180424b3.htm
Product Prospectus Supplement ERN-ETF-1 dated September 11, 2018:
https://www.sec.gov/Archives/edgar/data/1000275/000114036118038211/form424b5.htm
Our Central Index Key, or CIK, on the SEC website is 1000275. As used in this pricing supplement, "we," "us," or "our" refers to Royal Bank of
Canada.
https://www.sec.gov/Archives/edgar/data/1000275/000114036119023300/form424b2.htm[12/27/2019 11:39:22 AM]

P-5
RBC Capital Markets, LLC

Auto-Callable Barrier Notes
Royal Bank of Canada

H Y POT H ET I CAL EX AM PLES
The table set out below is included for illustration purposes only. The table illustrates the payment upon an automatic call and the Payment at
Maturity of the Notes for a hypothetical range of performance for the Lesser Performing Reference Asset, assuming the following terms:
Hypothetical Initial Level (for each Reference Asset):
1,000*
Hypothetical Barrier Level (for each Reference Asset):
700, which is 70% of the hypothetical Initial Level
Principal Amount:
$1,000 per Note
Call Return Rate:
10.00% per annum (2.50% per quarter)
Hypothetical Call Amounts:
$1,050.00 if called on the first Observation Date
(occurring in June 2020), increasing by $25.00 on each
subsequent Observation Date, as set forth in the table
above.
* The hypothetical Initial Level of 1,000 used in the examples below has been chosen for illustrative purposes only and is not the actual
Initial Level of any Reference Asset. The actual Initial Levels for each Reference Asset are set forth on the cover page of this pricing
supplement. We make no representation or warranty as to which of the Reference Assets will be the Lesser Performing
Reference Asset. It is possible that the Final Level of each Reference Asset will be less than its Initial Level.
Sum m a ry of t he H ypot he t ic a l Ex a m ple s
N ot e s Are N ot Ca lle d on Any

N ot e s Are Ca lle d on a n Obse rva t ion Da t e
Obse rva t ion Da t e

Ex a m ple 1
Ex a m ple 2
Ex a m ple 3
Ex a m ple 4
Ex a m ple 5

EEM
UKX
EEM
UKX
EEM
UKX
EEM
UKX
EEM
UKX
Initial Level
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
Closing Value on the First
1,200
1,250
1,100
900
900
1,050
880
805
980
805
Observation Date (June 2020)
Closing Value on the Second
N/A
N/A
1,020
1,025
850
1,200
780
900
780
1,100
Observation Date
Closing Value on the 3rd to 18th
Observation Dates (the next to last
N/A
N/A
N/A
N/A
*
*
*
*
*
*
Observation Date)
Closing Value on the Final
N/A
N/A
N/A
N/A
970
1,105
850
1,200
600
1,120
Observation Date
Percentage Change of the Reference
N/A
N/A
N/A
N/A
N/A
N/A
-15%
20%
-40%
12%
Assets
Percentage Change of the Lesser
N/A
N/A
N/A
-15%
-40%
Performing Reference Asset
$1,500.00 (paid on the
$1,050.00
$1,075.00
N/A
N/A
N/A
Call Amount
maturity date)
Payment at Maturity (if not previously
N/A
N/A
N/A
$1,000
$600
called)
* Various Closing Values, each below the applicable Call Level. The Call Level decreases to 95% of the applicable Initial Level beginning with
the 5th Observation Date on June 24, 2021.
P-6
RBC Capital Markets, LLC

Auto-Callable Barrier Notes
Royal Bank of Canada

H ypot he t ic a l Ex a m ple s of Am ount s Pa ya ble U pon a n Aut om a t ic Ca ll
https://www.sec.gov/Archives/edgar/data/1000275/000114036119023300/form424b2.htm[12/27/2019 11:39:22 AM]

The following hypothetical examples illustrate payments of the Call Amounts set forth in the table on page P-2.
Ex a m ple 1 : T he le ve l of t he Le sse r Pe rform ing Re fe re nc e Asse t inc re a se s by 2 5 % from t he I nit ia l Le ve l of 1 ,0 0 0 t o a
c losing le ve l of 1 ,2 5 0 on t he first Obse rva t ion Da t e . Because the closing level of the Lesser Performing Reference Asset on the first
Observation Date is greater than its Initial Level of 1,000, the investor receives on the applicable Call Settlement Date a cash payment of
$1,050.00, representing the corresponding hypothetical Call Amount. After the Notes are called, they will no longer remain outstanding and there
will be no further payments on the Notes.
Ex a m ple 2 : T he le ve l of t he Le sse r Pe rform ing Re fe re nc e Asse t de c re a se s by 1 0 % from t he I nit ia l Le ve l of 1 ,0 0 0 t o
a c losing le ve l on t he first Obse rva t ion Da t e of 9 0 0 but t he le ve l of t he Le sse r Pe rform ing Re fe re nc e Asse t
inc re a se s by 1 0 % from t he I nit ia l Le ve l of 1 ,0 0 0 t o a c losing le ve l of 1 ,1 0 0 on t he se c ond Obse rva t ion Da t e . Because
the Notes are not called on the first Observation Date and the closing level of the Lesser Performing Reference Asset on the second
Observation Date is greater than its Initial Level of 1,000, the investor receives on the applicable Call Settlement Date a cash payment of
$1,075.00, representing the corresponding hypothetical Call Amount. After the Notes are called, they will no longer remain outstanding and there
will be no further payments on the Notes.
Ex a m ple 3 : T he N ot e s a re not c a lle d on a ny of t he Obse rva t ion Da t e s a nd t he Fina l Le ve l of t he Le sse r Pe rform ing
Re fe re nc e Asse t is 1 ,2 0 0 on t he V a lua t ion Da t e , w hic h is gre a t e r t ha n it s I nit ia l Le ve l of 1 ,0 0 0 . Because the Notes are
not called on any of the Observation Dates and the closing level of the Lesser Performing Reference Asset on the Valuation Date is greater than
its Initial Level of 1,000, the investor receives on the Maturity Date a cash payment of $1,500.00, representing the corresponding hypothetical
Call Amount.
H ypot he t ic a l Ex a m ple s of Am ount s Pa ya ble a t M a t urit y
The following hypothetical examples illustrate how the payments at maturity set forth in the table above are calculated, a ssum ing t he N ot e s
ha ve not be e n c a lle d .
Ex a m ple 4 : T he le ve l of t he Le sse r Pe rform ing Re fe re nc e Asse t de c re a se s by 1 0 % from t he I nit ia l Le ve l of 1 ,0 0 0 t o
it s Fina l Le ve l of 9 0 0 . The Notes are not called on any Observation Date because the closing level of at least one Reference Asset is
below its Initial Level on each Observation Date (including the Valuation Date). Because the Final Level of the Lesser Performing Reference
Asset is less than its Initial Level of 1,000 but greater than its Barrier Level, the investor receives at maturity, a cash payment of $1,000 per
Note, despite the 10% decline in the level of the Lesser Performing Reference Asset.
Ex a m ple 5 : T he le ve l of t he Le sse r Pe rform ing Re fe re nc e Asse t is 6 0 0 on t he V a lua t ion Da t e , w hic h is le ss t ha n it s
Ba rrie r Le ve l of 7 0 0 . The Notes are not called on any Observation Date because the closing level of at least one Reference Asset is below
its Initial Level on each Observation Date (including the Valuation Date). Because the Final Level of the Lesser Performing Reference Asset is
less than its Barrier Level, we will pay only $600 for each $1,000 in the principal amount of the Notes, calculated as follows:
Principal Amount + (Principal Amount x Reference Asset Return of the Lesser Performing Reference Asset)
= $1,000 + ($1,000 x -40%) = $1,000 - $400 = $600
* * *
The payments shown above are entirely hypothetical; they are based on values of the Reference Assets that may not be achieved and on
assumptions that may prove to be erroneous. The actual market value of your Notes on the Maturity Date or at any other time, including any
time you may wish to sell your Notes, may bear little relation to the hypothetical payments at maturity shown above, and those amounts should
not be viewed as an indication of the financial return on an investment in the Notes or on an investment in the securities included in any
Reference Asset.
P-7
RBC Capital Markets, LLC

Auto-Callable Barrier Notes
Royal Bank of Canada

SELECT ED RI SK CON SI DERAT I ON S
An investment in the Notes involves significant risks. Investing in the Notes is not equivalent to investing directly in the Reference Assets. These
risks are explained in more detail in the section "Additional Risk Factors Specific to the Notes" in the product prospectus supplement. In addition
to the risks described in the prospectus supplement and the product prospectus supplement, you should consider the following:
https://www.sec.gov/Archives/edgar/data/1000275/000114036119023300/form424b2.htm[12/27/2019 11:39:22 AM]

·
Princ ipa l a t Risk -- Investors in the Notes could lose all or a substantial portion of their principal amount if there is a decline in the
value of the Lesser Performing Reference Asset between the Trade Date and the Valuation Date. If the Notes are not automatically
called and the Final Level of the Lesser Performing Reference Asset on the Valuation Date is less than its Barrier Level, the amount of
cash that you receive at maturity will represent a loss of your principal that is proportionate to the decline in the value of the Lesser
Performing Reference Asset from the Trade Date to the Valuation Date.
·
T he N ot e s Are Subje c t t o a n Aut om a t ic Ca ll -- If, starting in June 2020 and on any Observation Date, the closing price or
closing level of each Reference Asset is greater than or equal to the applicable Call Level, 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
the applicable Call Amount on the corresponding Call Settlement Date. You will not receive any payments after the Call Settlement
Date and you will not receive any return on the Notes that exceeds the applicable Call Amount provided above, even if the value of one
or both of the Reference Assets increases substantially. 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.
Because the Call Level will decrease after March 2021, it may be more likely for the Notes to be automatically called on an Observation
Date occurring after that date.
·
T he N ot e s Do N ot Pa y I nt e re st a nd Y our Re t urn M a y Be Low e r t ha n t he Re t urn on a Conve nt iona l De bt
Se c urit y of Com pa ra ble M a t urit y -- There will be no periodic interest payments on the Notes as there would be on a
conventional fixed-rate or floating-rate debt security having the same 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. Your return may be less than the return you would
earn if you purchased one of our conventional senior interest bearing debt securities.
·
Y our Re de m pt ion Am ount Will Be De t e rm ine d Sole ly by Re fe re nc e t o t he Le sse r Pe rform ing Re fe re nc e Asse t ,
Eve n if t he Ot he r Re fe re nc e Asse t Pe rform s Be t t e r -- If either of the Reference Assets has a Final Level that is less than
its Initial Level or its Barrier Level, your return will be linked to the Lesser Performing Reference Asset. Even if the Final Level of one or
both of the other Reference Assets has increased compared to its Initial Level, or has experienced a decrease that is less than that of
the Lesser Performing Reference Asset, your return will only be determined by reference to the performance of the Lesser Performing
Reference Asset, regardless of the performance of the other Reference Asset.
·
Y our Pa ym e nt on t he N ot e s Will Be De t e rm ine d by Re fe re nc e t o Ea c h Re fe re nc e Asse t I ndividua lly, N ot t o a
Ba sk e t , a nd t he Pa ym e nt a t M a t urit y Will Be Ba se d on t he Pe rform a nc e of t he Le sse r Pe rform ing Re fe re nc e
Asse t -- The Payment at Maturity will be determined only by reference to the performance of the Lesser Performing Reference Asset,
regardless of the performance of the other Reference Asset. The Notes are not linked to a weighted basket, in which the risk may be
mitigated and diversified among each of the basket components. For example, in the case of notes linked to a weighted basket, the
return would depend on the weighted aggregate performance of the basket components reflected as the basket return. As a result, the
depreciation of one basket component could be mitigated by the appreciation of the other basket component, as scaled by the
weighting of those basket components. However, in the case of the Notes, the individual performance of each of the Reference Assets
would not be combined, and the depreciation of one Reference Asset would not be mitigated by any appreciation of the other
Reference Asset. Instead, your return will depend solely on the Final Level of the Lesser Performing Reference Asset.
·
Pa ym e nt s on t he N ot e s Are Subje c t t o Our Cre dit Risk , a nd Cha nge s in Our Cre dit Ra t ings Are Ex pe c t e d t o
Affe c t t he M a rk e t V a lue of t he N ot e s -- The Notes are our senior unsecured debt securities. As a result, your receipt of any
Call Amounts, if payable, or the amount due on the maturity date, is dependent upon our ability to repay our obligations on the
applicable payment date. This will be the case even if the values of the Reference Assets increase after the Trade Date. No assurance
can be given as to what our financial condition will be at any time during the term of the Notes.
·
T he re M a y N ot Be a n Ac t ive T ra ding M a rk e t for t he N ot e s Sa le s in t he Se c onda ry M a rk e t M a y Re sult in
Signific a nt Losse s -- 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 our
other affiliates may stop any market-making activities at any time. Even if a secondary market for the Notes develops, it may
P-8
RBC Capital Markets, LLC

Auto-Callable Barrier Notes
Royal Bank of Canada

https://www.sec.gov/Archives/edgar/data/1000275/000114036119023300/form424b2.htm[12/27/2019 11:39:22 AM]

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 asked prices for the Notes in any secondary market could be substantial.
·
Ow ning t he N ot e s I s N ot t he Sa m e a s Ow ning t he Se c urit ie s Re pre se nt e d by t he Re fe re nc e Asse t s -- The
return on your Notes is unlikely to reflect the return you would realize if you actually owned the securities represented by the Reference
Assets. For instance, you will not receive or be entitled to receive any dividend payments or other distributions on those securities
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 these
securities may have. Furthermore, the Reference Assets may appreciate substantially during the term of the Notes, while your potential
return will be limited to the applicable Call Amounts.
·
T he I nit ia l Est im a t e d V a lue of t he N ot e s I s Le ss t ha n t he Pric e t o t he Public -- The initial estimated value 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 values of the Reference Assets, the borrowing rate we pay to issue securities of this kind, and the inclusion in
the price to the public of the underwriting discount 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 the 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 and
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 the Notes to maturity.
·
T he I nit ia l Est im a t e d V a lue of t he N ot e s on t he Cove r Pa ge of t his Pric ing Supple m e nt I s a n Est im a t e Only,
Ca lc ula t e d a s of t he T im e t he T e rm s of t he N ot e s We re Se t -- 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.
The value of the Notes at any time after the Trade Date will vary based on many factors, including changes in market conditions, and
cannot be predicted with accuracy. As a result, the actual value you would receive if you sold the Notes in any secondary market, if
any, should be expected to differ materially from the initial estimated value of the Notes.
·
An I nve st m e nt in t he N ot e s I s Subje c t t o Risk s Re la t ing t o N on -U .S. Se c urit ie s M a rk e t s -- Because foreign
companies or foreign equity securities included in the Reference Assets are publicly traded in the applicable foreign countries and are
denominated in currencies other than U.S. dollars, an investment in the securities involves particular risks. For example, the non-U.S.
securities markets may be more volatile than the U.S. securities markets, and market developments may affect these markets
differently from the U.S. or other securities markets. Direct or indirect government intervention to stabilize the securities markets outside
the U.S., as well as cross-shareholdings in certain companies, may affect trading prices and trading volumes in those markets. Also, the
public availability of information concerning the foreign issuers may vary depending on their home jurisdiction and the reporting
requirements imposed by their respective regulators. In addition, the foreign issuers may be subject to accounting, auditing and
financial reporting standards and requirements that differ from those applicable to U.S. reporting companies.
·
Em e rging M a rk e t s Risk -- Investments in securities linked directly or indirectly to emerging market equity securities, such as the
EEM, involve many risks, including, but not limited to: economic, social, political, financial and military conditions in the emerging
market; regulation by national, provincial, and local governments; less liquidity and smaller market capitalizations than exist in the case
of many large U.S. companies; different accounting and disclosure standards; and political uncertainties. Stock prices of emerging
market companies may be more volatile and may be affected by market developments differently than U.S. companies. Government
intervention to stabilize securities markets and cross-shareholdings may affect prices and volume of trading of the securities of
emerging market companies. Economic, social, political, financial and military factors could, in turn, negatively affect such companies'
value. These factors could include changes in the emerging market government's economic and fiscal policies, possible imposition of,
or changes in, currency exchange laws or other laws or restrictions applicable to the emerging market companies or investments in
their securities, and the possibility of fluctuations in the rate of exchange between currencies. Moreover, emerging market economies
may differ favorably or unfavorably from the
P-9
RBC Capital Markets, LLC

https://www.sec.gov/Archives/edgar/data/1000275/000114036119023300/form424b2.htm[12/27/2019 11:39:22 AM]

Auto-Callable Barrier Notes
Royal Bank of Canada

U.S. economy in a variety of ways, including growth of gross national product, rate of inflation, capital reinvestment, resources and self-
sufficiency. You should carefully consider the risks related to emerging markets, to which the Notes are highly susceptible, before
making a decision to invest in the Notes.
·
M a rk e t Disrupt ion Eve nt s a nd Adjust m e nt s -- The payment at maturity, each Observation Date, and the Valuation Date are
subject to adjustment as to each Reference Asset as described above and 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--Market Disruption Events" in the product prospectus supplement and "--Additional Terms of Your Notes Related to the UKX--
Market Disruption Events" below.
·
Our Busine ss Ac t ivit ie s M a y Cre a t e Conflic t s of I nt e re st -- We and our affiliates expect to engage in trading activities
related to the Reference Assets or the securities held by or included in the Reference Assets 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 prices or levels
of the Reference Assets, 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 issuers of the securities held by or included in the Reference Assets, 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 Assets or securities held by or included in the Reference Assets. 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 prices or levels of the Reference Assets, and, therefore, the market value
of the Notes.
·
T he EEM a nd it s U nde rlying I nde x is Diffe re nt -- The performance of the EEM may not exactly replicate the performance of
its underlying index, because this Reference Asset will reflect transaction costs and fees that are not included in the calculation of its
underlying index. It is also possible that the performance of this Reference Asset may not fully replicate or may in certain circumstances
diverge significantly from the performance of their underlying indices due to the temporary unavailability of certain securities in the
secondary market, the performance of any derivative instruments contained in the Reference Asset, or due to other circumstances.
This Reference Asset may use futures contracts, options, swap agreements, currency forwards and repurchase agreements in seeking
performance that corresponds to their underlying indices and in managing cash flows.
During periods of market volatility, securities held by this Reference Asset may be unavailable in the secondary market, market
participants may be unable to calculate accurately their net asset value per share and their liquidity may be adversely affected. This
kind of market volatility may also disrupt the ability of market participants to create and redeem shares of the Reference Asset. Further,
market volatility may adversely affect, sometimes materially, the prices at which market participants are willing to buy and sell shares of
the applicable Reference Asset. As a result, under these circumstances, the market value of shares of this Reference Asset may vary
substantially from the applicable net asset value per share. For all of the foregoing reasons, the performance of this Reference Asset
may not correlate with the performance of its underlying index as well as their net asset value per share, which could materially and
adversely affect the value of the Notes in the secondary market and/or reduce the payments on the Notes.
·
Adjust m e nt s t o t he Re fe re nc e Asse t s or t he U nde rlying I nde x of t he EEM Could Adve rse ly Affe c t t he N ot e s --
The investment advisor or the sponsor of the relevant Reference Asset or the underlying index of EEM is responsible for calculating
and maintaining the relevant Reference Asset or underlying index. The investment advisor or the sponsor can add, delete or substitute
the stocks comprising the relevant Reference Asset or the underlying index. The investment advisor or the sponsor may make other
methodological changes that could change the value of the relevant Reference Asset or the underlying index at any time.
Consequently, any of these actions could adversely affect the amounts payable on the Notes or their market value.
·
We a nd Our Affilia t e s Do N ot H a ve Any Affilia t ion w it h t he Advisor or t he Sponsors of t he Re fe re nc e Asse t s
or t he U nde rlying I ndic e s a nd Are N ot Re sponsible for T he ir Public Disc losure of I nform a t ion -- We and our
affiliates are not affiliated with the investment advisor or the sponsors of any Reference Asset or the underlying index of the EEM in any
way and have no ability to control or predict their actions, including any errors in or discontinuance of disclosure regarding its methods
or policies relating to the Reference Assets or the underlying indices. The investment advisor or the sponsors of the Reference Assets
and the underlying indices are not involved in the offering of the Notes in any way and have no obligation to consider your interests as
an owner of the Notes in taking any actions relating to the Reference Assets that might affect the value of the Notes. Neither we nor
any of our affiliates has independently verified the adequacy or accuracy of the information about the investment advisor, the sponsors,
or the Reference Assets contained in any public disclosure of information. You, as an investor in the Notes, should make your own
investigation into the Reference Assets.
https://www.sec.gov/Archives/edgar/data/1000275/000114036119023300/form424b2.htm[12/27/2019 11:39:22 AM]

P-10
RBC Capital Markets, LLC

Auto-Callable Barrier Notes
Royal Bank of Canada

ADDI T I ON AL T ERM S OF Y OU R N OT ES RELAT ED T O T H E U K X
Closing Le ve l
The closing level of the UKX on any trading day will equal its closing level published following the regular official weekday close of trading on
that trading day.
A "trading day" as to the UKX means a day on which the principal trading market for the UKX is open for trading.
U na va ila bilit y of t he Le ve l of t he U K X
If the sponsor of the UKX discontinues publication of the UKX and its sponsor or another entity publishes a successor or substitute index that the
calculation agent determines, in its sole discretion, to be comparable to the UKX (such successor or substitute index being referred to in this
section as a "successor index"), then any subsequent index closing level will be determined by reference to the published level of that successor
index at the regular weekday close of trading on the applicable trading day.
Upon any selection by the calculation agent of a successor index, the calculation agent will provide written notice to the trustee of the selection,
and the trustee will furnish written notice thereof, to the extent the trustee is required to under the senior debt indenture, to each noteholder, or in
the case of global notes, the depositary, as holder of the global notes.
If a successor index is selected by the calculation agent, that successor index will be used as a substitute for the UKX for all purposes, including
for purposes of determining whether a market disruption event exists with respect to the UKX.
If the sponsor of the UKX discontinues publication of the UKX prior to, and that discontinuance is continuing on, any trading day on which the
level of the UKX must be determined, and the calculation agent determines, in its sole discretion, that no successor index is available at that
time, then the calculation agent will determine the level of the UKX for the relevant date in accordance with the formula for and method of
calculating the UKX last in effect prior to the discontinuance, without rebalancing or substitution, using the closing level (or, if trading in the
relevant underlying securities or components of the UKX have been materially suspended or materially limited, its good faith estimate of the
closing level that would have prevailed but for that suspension or limitation) at the close of the principal trading session of the relevant exchange
on that date of each security or component most recently comprising the UKX. Notwithstanding these alternative arrangements, discontinuance
of the publication of the UKX may adversely affect the value of your Notes.
If at any time the method of calculating a closing level for the UKX or a successor index is changed in a material respect, or if the UKX is in any
other way modified so that it does not, in the opinion of the calculation agent, fairly represent its level had those changes or modifications not
been made, then, from and after that time, the calculation agent will, at the close of business in New York City on the applicable trading day,
make such calculations and adjustments as, in the good faith judgment of the calculation agent, may be necessary in order to arrive at a level of
an index comparable to such index as if those changes or modifications had not been made. Accordingly, if the method of calculating an index is
modified so that the level of that index is a fraction of what it would have been if it had not been modified (e.g., due to a split in that index), then
the calculation agent will adjust the level of that index in order to arrive at a level of that index as if it had not been modified (e.g., as if such split
had not occurred).
M a rk e t Disrupt ion Eve nt s
A "market disruption event" with respect to the UKX or a successor index means any event, circumstance or cause which we determine, and the
calculation agent confirms, has or will have a material adverse effect on our ability to perform our obligations under the Notes or to hedge our
position in respect of our obligations to make payment of amounts owing thereunder and more specifically includes the following events to the
extent that they have such effect with respect to that index:
·
a suspension, absence or limitation of trading in index components constituting 20% or more, by weight, of such index;
·
a suspension, absence or limitation of trading in futures or options contracts relating to an index on their respective markets;
·
any event that disrupts or impairs, as determined by the calculation agent, the ability of market participants to (i) effect transactions in,
or obtain market values for, index components constituting 20% or more, by weight, of such index, or (ii) effect transactions in, or obtain
market values for, futures or options contracts relating to such index on their respective markets;
·
the closure on any day of the primary market for futures or options contracts relating to such index or index components constituting
https://www.sec.gov/Archives/edgar/data/1000275/000114036119023300/form424b2.htm[12/27/2019 11:39:22 AM]

Document Outline

#1">
- #1">