Obligation Royal Bank of Canada 10% ( US78015KQP20 ) en USD

Royal Bank of Canada

100 % ▼

Canada

US78015KQP20 ( en USD )

10% par an ( paiement semestriel )

02/03/2023 - Obligation échue

Prospectus brochure de l'obligation Royal Bank of Canada US78015KQP20 en USD 10%, échue

1 000 USD

4 999 000 USD

78015KQP2

N/A

La Banque Royale du Canada (RBC) est une institution financière multinationale canadienne offrant une large gamme de services financiers, incluant les services bancaires aux particuliers et aux entreprises, la gestion de patrimoine, les marchés des capitaux et l'assurance.

L'Obligation émise par Royal Bank of Canada ( Canada ) , en USD, avec le code ISIN US78015KQP20, paye un coupon de 10% par an.
Le paiement des coupons est semestriel et la maturité de l'Obligation est le 02/03/2023

3/2/2020
https://www.sec.gov/Archives/edgar/data/1000275/000114036120004421/form424b2.htm
424B2 1 form424b2.htm RBC AMD NVDA (78015KQP2)
Filed Pursuant to Rule 424(b)(2)
Registration Statement No. 333-227001

Pricing Supplement
$4,999,000
Dated February 26, 2020
Auto-Cal able Fixed Coupon Barrier Notes
to the Product Prospectus Supplement No. CCBN-1 Dated September
Linked to the Lesser Performing of Two Equity
10, 2018, the Prospectus Supplement Dated September 7, 2018 and
Securities, Due March 2, 2023
the Prospectus, Dated September 7, 2018
Royal Bank of Canada
Royal Bank of Canada is offering Auto-Callable Fixed Coupon Barrier Notes (the "Notes") linked to the lesser performing of two equity securities (each, a "Reference Stock" and
collectively, the "Reference Stocks"). The Notes offered are senior unsecured obligations of Royal Bank of Canada, will pay a quarterly fixed coupon at the rate specified below,
and will have the terms described in the documents described above, as supplemented or modified by this pricing supplement.
Reference Stocks and Reference Stock

Issuers
Initial Stock Prices
Trigger Prices*
Advanced Micro Devices, Inc. ("AMD")

$47.49

$23.75, which is 50% of its Initial Stock Price
NVIDIA Corporation ("NVDA")

$267.65

$133.83, which is 50% of its Initial Stock Price
*Rounded to two decimal places.
The Notes do not guarantee any return of principal at maturity. Any payments on the Notes are subject to our credit risk.
Investing in the Notes involves a number of risks. See "Selected Risk Considerations" beginning on page P-8 of this pricing supplement, and "Additional Risk Factors Specific to
Your Notes" beginning on page PS-3 of the product prospectus supplement dated September 10, 2018, and 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.
Issuer:
Royal Bank of Canada
Stock Exchange Listing:
None
Trade Date:
February 26, 2020
Principal Amount:
$1,000 per Note
Issue Date:
February 28, 2020
Maturity Date:
March 2, 2023
Observation Dates:
Quarterly, as set forth below.
Coupon Payment Dates:
Quarterly, as set forth below.
Valuation Date:
February 27, 2023
Coupon Rate:
10% per annum
Payment at Maturity (if
If the Notes are not previously called, in addition to the final Coupon, we will pay you at maturity an amount based on the Final Stock Price of the
held to maturity):
Lesser Performing Reference Stock:
For each $1,000 in principal amount, $1,000, unless the Final Stock Price of the Lesser Performing Reference Stock is less than its Trigger Price.
If the Final Stock Price of the Lesser Performing Reference Stock is less than its Trigger Price, then the investor will receive at maturity, for each
$1,000 in principal amount, a cash payment equal to:
$1,000 + ($1,000 x Reference Stock Return of the Lesser Performing Reference Stock)
Investors in the Notes could lose some or all of their principal amount if the Final Stock Price of the Lesser Performing Reference Stock
is below its Trigger Price.
Lesser Performing
The Reference Stock with the lowest Reference Stock Return.
Reference Stock:
Call Feature:
If the closing price of each Reference Stock is greater than or equal to its Initial Stock Price starting on August 26, 2020 and on any Observation
Date thereafter, the Notes will be automatically called for 100% of their principal amount, plus the Coupon applicable to the corresponding
Coupon Payment Date.
Call Settlement Dates:
The Coupon Payment Date corresponding to that Observation Date.
Final Stock Price:
For each Reference Stock, its closing price on the Valuation Date.
CUSIP:
78015KQP2
Per Note

Total
Price to public(1)
100.00%

$4,999,000
Underwriting discounts and commissions(1)
2.25%

$112,477.50
Proceeds to Royal Bank of Canada
97.75%

$4,886,522.50
(1)Certain dealers who purchase the Notes for sale to certain fee-based advisory accounts may forego some or all of their underwriting discount or selling concessions. The
public offering price for investors purchasing the Notes in these accounts may be between $977.50 and $1,000 per $1,000 in principal amount.
The initial estimated value of the Notes as of the Trade Date was $949.23 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 agent for Royal Bank of Canada, will receive a commission of $22.50 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 $22.50 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
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Auto-Cal able Fixed Coupon Barrier Notes
Linked to the Lesser Performing of Two
Equity Securities
Royal Bank of Canada
SUMMARY
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-Cal able Fixed Coupon Barrier Notes (the "Notes")
linked to the lesser performing of two equity securities (the "Reference Stocks").
Issuer:
Royal Bank of Canada ("Royal Bank")
Trade Date:
February 26, 2020
Issue Date:
February 28, 2020
Valuation Date:
February 27, 2023
Maturity Date:
March 2, 2023
Denominations:
Minimum denomination of $1,000, and integral multiples of $1,000 thereafter.
Designated Currency: U.S. Dol ars
Coupon:
We wil pay you a fixed Coupon during the term of the Notes, periodical y in arrears on each Coupon
Payment Date, at the rate specified below.
Coupon Rate:
10% per annum (2.50% per quarter.
Observation Dates:
Quarterly on May 26, 2020, August 26, 2020, November 27, 2020, February 26, 2021, May 26, 2021,
August 26, 2021, November 26, 2021, February 28, 2022, May 26, 2022, August 26, 2022, November 28,
2022 and the Valuation Date.
Coupon Payment
The Coupons wil be paid quarterly on May 29, 2020, August 31, 2020, December 2, 2020, March 3, 2021,
Dates:
June 1, 2021, August 31, 2021, December 1, 2021, March 3, 2022, June 1, 2022, August 31, 2022,
December 1, 2022 and the Maturity Date.
Record Dates:
The record date for each Coupon Payment Date wil be one business day prior to that scheduled Coupon
Payment Date; provided, however, that the Coupon payable at maturity or upon a cal wil be payable to the
person to whom the payment at maturity or upon the cal , as the case may be, wil be payable.
Cal Feature:
If, starting on August 26, 2020 and on any Observation Date thereafter, the closing price of each
Reference Stock is greater than or equal to its Initial Stock Price, then the Notes wil be automatical y cal ed.
Payment if Cal ed:
If the Notes are automatical y cal ed, then, on the applicable Cal Settlement Date, for each $1,000 principal
amount, you wil receive $1,000 plus the Coupon otherwise due on that Cal Settlement Date.
Cal Settlement Dates: If the Notes are cal ed on any Observation Date starting on August 26, 2020 or thereafter, the Cal
Settlement Date wil be the Coupon Payment Date corresponding to that Observation Date.
Initial Stock Price:
For each Reference Stock, its closing price on the Trade Date, as set forth on the cover page of this pricing
supplement.
Final Stock Price:
For each Reference Stock, its closing price on the Valuation Date.
Trigger Price:
For each Reference Stock, 50% of its Initial Stock Price, as set forth on the cover page of this pricing
supplement.
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Auto-Cal able Fixed Coupon Barrier Notes
Linked to the Lesser Performing of Two
Equity Securities
Royal Bank of Canada
Payment at Maturity (if If the Notes are not previously cal ed, we wil pay you at maturity, together with the final Coupon, an amount
not previously cal ed
based on the Final Stock Price of the Lesser Performing Reference Stock:
and held to maturity):
· If the Final Stock Price of the Lesser Performing Reference Stock is greater than or equal to its Trigger
Price, we wil pay you a cash payment equal to the principal amount.
· If the Final Stock Price of the Lesser Performing Reference Stock is below its Trigger Price, you wil
receive at maturity, for each $1,000 in principal amount, a cash payment equal to:
$1,000 + ($1,000 x Reference Stock Return of the Lesser Performing Reference Stock)
The amount of cash that you receive wil be less than your principal amount, if anything, resulting in a loss
that is proportionate to the decline of the Lesser Performing Reference Stock from the Trade Date to the
Valuation Date. Investors in the Notes wil lose some or al of their principal amount if the Final Stock Price
of the Lesser Performing Reference Stock is less than its Trigger Price.
Stock Settlement:
Not applicable. Payments on the Notes wil be made solely in cash.
Reference Stock
With respect to each Reference Stock:
Return:
Final Stock Price Initial Stock Price
Initial Stock Price
Lesser Performing
The Reference Stock with the lowest Reference Stock Return.
Reference Stock:
Market Disruption
The occurrence of a market disruption event (or a non-trading day) as to either of the Reference
Events:
Stocks wil result in the postponement of an Observation Date or the Valuation Date as to that
Reference Stock, as described in the product prospectus supplement, but not to any non-affected
Reference Stock.
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 Notes as an investment unit consisting of
(i) a non-contingent debt instrument issued by us to you and (i ) a put option with respect to the
Reference Stocks 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 our counsel Morrison & Foerster LLP) in
the product prospectus supplement dated September 10, 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
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 wil 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).
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Auto-Cal able Fixed Coupon Barrier Notes
Linked to the Lesser Performing of Two
Equity Securities
Royal Bank of Canada
Terms Incorporated in Al of the terms appearing above the item captioned "Secondary Market" on the cover page and pages
the Master Note:
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 10, 2018, as modified by this
pricing supplement.
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Auto-Cal able Fixed Coupon Barrier Notes
Linked to the Lesser Performing of Two
Equity Securities
Royal Bank of Canada
ADDITIONAL TERMS OF YOUR NOTES
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 10, 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.
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 in "Additional Risk Factors Specific to Your Notes"
in the product prospectus supplement dated September 10, 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 dated September 10, 2018:
https://www.sec.gov/Archives/edgar/data/1000275/000114036118038094/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.
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Auto-Cal able Fixed Coupon Barrier Notes
Linked to the Lesser Performing of Two
Equity Securities
Royal Bank of Canada
HYPOTHETICAL EXAMPLES
The table set out below is included for il ustration purposes only. The table il ustrates the Payment at Maturity of the Notes
(excluding the final Coupon) for a hypothetical range of performance for the Lesser Performing Reference Stock, assuming the
fol owing terms and that the Notes are not automatical y cal ed prior to maturity:
Hypothetical Initial Stock Price:
$100.00*
Hypothetical Trigger Price:
$50.00, which is 50% of the hypothetical Initial
Stock Price
Observation Dates:
Quarterly
Principal Amount:
$1,000 per Note
* The hypothetical Initial Stock Price of $100 used in the examples below has been chosen for il ustrative purposes only and is not the
actual Initial Stock Price of any Reference Stock. The actual Initial Stock Price for each Reference Stock is set forth on the cover page of
this pricing supplement. We make no representation or warranty as to which of the Reference Stocks will be the Lesser Performing
Reference Stock. It is possible that the Final Stock Price of each Reference Stock will be less than its Initial Stock Price.
Hypothetical Final Stock Prices are shown in the first column on the left. The second column shows the Payment at Maturity for a
range of Final Stock Prices on the Valuation Date. The third column shows the amount of cash to be paid on the Notes per $1,000 in
principal amount. If the Notes are cal ed prior to maturity, the hypothetical examples below wil not be relevant, and you wil receive
on the applicable Coupon Payment Date, for each $1,000 principal amount, $1,000 plus the Coupon otherwise due on the Notes.
Hypothetical Final Stock Price of
the Lesser Performing
Payment at Maturity as
Cash Payment Amount per
Reference Stock
Percentage of Principal Amount*
$1,000 in Principal Amount*
$150.00
100.00%
$1,000.00
$140.00
100.00%
$1,000.00
$130.00
100.00%
$1,000.00
$120.00
100.00%
$1,000.00
$110.00
100.00%
$1,000.00
$100.00
100.00%
$1,000.00
$90.00
100.00%
$1,000.00
$80.00
100.00%
$1,000.00
$70.00
100.00%
$1,000.00
$60.00
100.00%
$1,000.00
$50.00
100.00%
$1,000.00
$49.99
49.99%
$499.90
$40.00
40.00%
$400.00
$30.00
30.00%
$300.00
$20.00
20.00%
$200.00
$10.00
10.00%
$100.00
$0.00
0.00%
$0.00
*Excluding the final Coupon.
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Auto-Cal able Fixed Coupon Barrier Notes
Linked to the Lesser Performing of Two
Equity Securities
Royal Bank of Canada
Hypothetical Examples of Amounts Payable at Maturity
The fol owing hypothetical examples il ustrate how the payments at maturity set forth in the table above are calculated, assuming
the Notes have not been cal ed.
Example 1: The price of the Lesser Performing Reference Stock increases by 25% from the Initial Stock Price to its Final
Stock Price of $125.00. Because the Final Stock Price of the Lesser Performing Reference Stock is greater than its Trigger Price,
the investor receives at maturity, a cash payment of $1,000 per Note, despite the 25% appreciation in the price of the Lesser
Performing Reference Stock.
Example 2: The price of the Lesser Performing Reference Stock decreases by 10% from the Initial Stock Price to its Final
Stock Price of $90.00. Because the Final Stock Price of the Lesser Performing Reference Stock is greater than its Trigger Price,
the investor receives at maturity, a cash payment of $1,000 per Note, despite the 10% decline in the price of the Lesser Performing
Reference Stock.
Example 3: The price of the Lesser Performing Reference Stock decreases by 70% from the Initial Stock Price to its Final
Stock Price of $30.00. Because the Final Stock Price of the Lesser Performing Reference Stock is less than its Trigger Price, we
wil pay only $300.00 for each $1,000 in the principal amount of the Notes, calculated as fol ows:
Principal Amount + (Principal Amount x Reference Stock Return of the Lesser Performing Reference Stock)
= $1,000 + ($1,000 x -70.00%) = $1,000 - $700.00 = $300.00
* * *
The Payments at Maturity shown above are entirely hypothetical; they are based on prices of the Reference Stocks that may not be
achieved on the Valuation Date 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 sel 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.
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Auto-Cal able Fixed Coupon Barrier Notes
Linked to the Lesser Performing of Two
Equity Securities
Royal Bank of Canada
SELECTED RISK CONSIDERATIONS
An investment in the Notes involves significant risks. Investing in the Notes is not equivalent to investing directly in the Reference
Stocks. These risks are explained in more detail in the section "Additional Risk Factors Specific to Your 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 fol owing:
·
Principal at Risk -- Investors in the Notes could lose al or a substantial portion of their principal amount if there is a
decline in the trading price of the Lesser Performing Reference Stock between the Trade Date and the Valuation Date. If the
Notes are not automatical y cal ed and the Final Stock Price of the Lesser Performing Reference Stock on the Valuation
Date is less than its Trigger Price, the amount of cash that you receive at maturity wil represent a loss of your principal that
is proportionate to the decline in the closing price of the Lesser Performing Reference Stock from the Trade Date to the
Valuation Date. The Coupons received on the Notes prior to the Maturity Date may not be sufficient to compensate for any
such loss.
·
The Notes Are Subject to an Automatic Call -- If on any Observation Date beginning in August 2020, the closing price of
each Reference Stock is greater than or equal to its Initial Stock Price, then the Notes wil be automatical y cal ed. If the
Notes are automatical y cal ed, then, on the applicable Cal Settlement Date, for each $1,000 in principal amount, you wil
receive $1,000 plus the Coupon otherwise due on the applicable Cal Settlement Date. You wil not receive any Coupons
after the Cal Settlement Date. You may be unable to reinvest your proceeds from the automatic cal in an investment with a
return that is as high as the return on the Notes would have been if they had not been cal ed.
·
The Notes Are Linked to the Lesser Performing Reference Stock, Even if the Other Reference Stock Performs
Better -- If either of the Reference Stocks has a Final Stock Price that is less than its Trigger Price, your return wil be
linked to the lesser performing of the two Reference Stocks. Even if the Final Stock Price of the other Reference Stock has
increased compared to its Initial Stock Price, or has experienced a decrease that is less than that of the Lesser Performing
Reference Stock, your return wil only be determined by reference to the performance of the Lesser Performing Reference
Stock, regardless of the performance of the other Reference Stock. Because each Reference Stock Issuer operates in
related sectors, they may each experience simultaneous and significant declines due to adverse conditions in those sectors.
·
Your Payment on the Notes Will Be Determined by Reference to Each Reference Stock Individually, Not to a Basket,
and the Payment at Maturity Will Be Based on the Performance of the Lesser Performing Reference Stock -- The
Payment at Maturity wil be determined only by reference to the performance of the Lesser Performing Reference Stock,
regardless of the performance of the other Reference Stock. 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 that basket component. However, in the case of the Notes, the individual
performance of each of the Reference Stocks would not be combined, and the depreciation of one Reference Stock would
not be mitigated by any appreciation of the other Reference Stock. Instead, your return wil depend solely on the Final Stock
Price of the Lesser Performing Reference Stock.
·
The Call Feature Limits Your Potential Return -- The return potential of the Notes is limited to the pre-specified Coupon
Rate, regardless of the appreciation of the Reference Stocks. In addition, if the Notes are cal ed due to the Cal Feature, you
wil not receive any Coupons or any other payment in respect of any Coupon Payment Dates after the applicable Cal
Settlement Date. Since the Notes could be cal ed as early as August 2020, the total return on the Notes could be minimal. If
the Notes are not cal ed, you may be subject to the ful downside performance of the Lesser Performing Reference Stock
even though your potential return is limited to the Coupon Rate. As a result, the return on an investment in the Notes could
be less than the return on a direct investment in the Reference Stocks.
·
Your Return May Be Lower than the Return on a Conventional Debt Security of Comparable Maturity -- The return
that you wil 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 bought a
conventional senior interest bearing debt security of Royal Bank.
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Auto-Cal able Fixed Coupon Barrier Notes
Linked to the Lesser Performing of Two
Equity Securities
Royal Bank of Canada
·
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, your receipt of the
Coupons and the amount due on any relevant payment date is dependent upon our ability to repay our obligations on the
applicable payment dates. This wil be the case even if the prices of the Reference Stocks increase after the Trade Date. No
assurance can be given as to what our financial condition wil be during the term of the Notes.
·
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 wil 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 other affiliate of ours 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 asked prices for your Notes in
any secondary market could be substantial.
·
The Initial Estimated Value of the Notes Is Less than the Price to the 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 wil ing to purchase the Notes in any secondary market (if any exists) at any time. If you attempt to sel 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 prices of the Reference Stocks, 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 sel the Notes in any secondary market and wil 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 sel 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 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 wil 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 wil ing to hold your
Notes to maturity.
·
The Initial Estimated Value of the Notes 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.
The value of the Notes at any time after the Trade Date wil 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 material y from the initial estimated value of your Notes.
·
Market Disruption Events and Adjustments -- The payment at maturity, each 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 wel as the consequences of that market disruption event, see "General Terms of the Notes--Market
Disruption Events" in the product prospectus supplement.
·
Our Business Activities May Create Conflicts of Interest -- We and our affiliates expect to engage in trading activities
related to the Reference Stocks 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 wil 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 share price of the
Reference Stocks, could be adverse to the interests of the holders of the
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RBC Capital Markets, LLC
https://www.sec.gov/Archives/edgar/data/1000275/000114036120004421/form424b2.htm
9/16

3/2/2020
https://www.sec.gov/Archives/edgar/data/1000275/000114036120004421/form424b2.htm

Auto-Cal able Fixed Coupon Barrier Notes
Linked to the Lesser Performing of Two
Equity Securities
Royal Bank of Canada
Notes. We and one or more of our affiliates may, at present or in the future, engage in business with the Reference Stock
Issuers, 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 Stocks. 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 share price of the Reference Stocks,
and, therefore, the market value of the Notes.
·
Owning the Notes Is Not the Same as Owning the Reference Stocks -- The return on your Notes is unlikely to reflect
the return you would realize if you actual y owned shares of the Reference Stocks. For instance, you wil not receive or be
entitled to receive any dividend payments or other distributions on these securities during the term of your Notes. As an
owner of the Notes, you wil not have voting rights or any other rights that holders of these securities may have.
Furthermore, the Reference Stocks may appreciate substantial y during the term of the Notes, while your potential return
wil be limited to the applicable Coupon payments.
·
You Must Rely on Your Own Evaluation of the Merits of an Investment Linked to the Reference Stocks -- In the
ordinary course of their business, our affiliates may have expressed views on expected movements in the Reference
Stocks, 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 business in
markets relating to any Reference Stock may at any time have significantly different views from those of our affiliates. For
these reasons, you are encouraged to derive information concerning the Reference Stocks from multiple sources, and you
should not rely solely on views expressed by our affiliates.
·
There Is No Affiliation Between the Reference Stock Issuers and RBCCM, and RBCCM Is Not Responsible for any
Disclosure by the Reference Stock Issuers -- We are not affiliated with the Reference Stock Issuers. However, we and
our affiliates may currently, or from time to time in the future engage, in business with either 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 Stocks.
P-10
RBC Capital Markets, LLC
https://www.sec.gov/Archives/edgar/data/1000275/000114036120004421/form424b2.htm
10/16