Obligation Royal Bank of Canada 0% ( US78015KSP02 ) en USD

Royal Bank of Canada

100 % ⇌

Canada

US78015KSP02 ( en USD )

26/06/2025

Prospectus brochure de l'obligation Royal Bank of Canada US78015KSP02 en USD 0%, échéance 26/06/2025

1 000 USD

1 525 000 USD

78015KSP0

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 US78015KSP02, paye un coupon de 0% par an.
Le paiement des coupons est semestriel et la maturité de l'Obligation est le 26/06/2025

6/25/2020
https://www.sec.gov/Archives/edgar/data/1000275/000114036120014630/form424b2.htm
424B2 1 form424b2.htm FINAL RUSS MEM COUP SNOW WBARR 78015KSP0
Filed Pursuant to Rule 424(b)(2)
Registration Statement No. 333-227001

Pricing Supplement
$1,525,000
Auto-Cal able Barrier Notes
Dated June 22, 2020
Linked to the Russel 2000® Index,
To the Product Prospectus Supplement ERN-EI-1, Prospectus
Due June 26, 2025
Supplement, and Prospectus Each Dated September 7, 2018
Royal Bank of Canada
Royal Bank of Canada is offering Auto-Callable Barrier Notes (the "Notes") linked to the equity index set forth below (the "Reference Asset"). 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 will be automatically called at the applicable Call Amount if the closing level of the Reference Asset is greater than or equal to the Initial Level on any
quarterly Observation Date. The Call Amounts are based on a rate of return of 10% per annum (2.50% per quarter, which we refer to as the "Call Return Rate"),
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.
Reference Asset

Initial Level

Barrier Level*
Russel 2000® Index ("RTY")

1,433.527

931.793, which is 65% of the Initial Level
* Rounded to three decimal places.
The Notes do not guarantee the 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-7 of this pricing supplement, "Additional Risk Factors
Specific to the Notes" beginning on page PS-4 of the product prospectus supplement dated September 7, 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.
Issuer:
Royal Bank of Canada
Stock Exchange Listing: None
Trade Date:
June 22, 2020
Principal Amount:
$1,000 per Note
Issue Date:
June 25, 2020
Maturity Date:
June 26, 2025
Valuation Date:
June 23, 2025 (which is the final Observation Date)
Final Level:
The closing level of the Reference Asset on the Valuation Date.
Call Feature:
If the closing level of the Reference Asset is greater than or equal to the Initial Level starting on September 22, 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.
Observation Dates and
Quarterly, as set forth below.
Call Settlement Dates:
Payment at Maturity (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
held to maturity):
Final Level:
For each $1,000 in principal amount, $1,000, unless the Final Level is less than the Barrier Level.
If the Final Level is less than the 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)
Investors could lose some or all of their initial investment if the Final Level is less than the Barrier Level.
CUSIP:
78015KSP0

Per Note

Total
Price to public(1)
100.00%
$1,525,000.00
Underwriting discounts and commissions(1)
2.75%
$41,937.50
Proceeds to Royal Bank of Canada
97.25%
$1,483.062.50
(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 $972.50 and $1,000 per $1,000 in principal amount.
The initial estimated value of the Notes as of the Trade Date was $950.57 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 ("RBCCM"), acting as our agent, will receive a commission of $27.50 per $1,000 in principal amount 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. 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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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 Barrier Notes (the "Notes") linked to
the Reference Asset.
Issuer:
Royal Bank of Canada ("Royal Bank")
Denominations:
Minimum denomination of $1,000, and integral multiples of $1,000 thereafter.
Designated Currency: U.S. Dol ars
Cal Feature:
If, on any Observation Date, the closing level of the Reference Asset is greater than or equal to the
Initial Level, then the Notes wil be automatical y cal ed and the applicable Cal Amount wil be paid
on the corresponding Cal Settlement Date. The Cal Amounts are set forth in the table below.
Cal Return Rate:
10% per annum
Observation
Observation Date
Call Settlement Date
Call Amounts
Dates/Cal Settlement
September 22, 2020
September 25, 2020
$1,025
Dates/Cal Amounts:
December 22, 2020
December 28, 2020
$1,050

March 22, 2021
March 25, 2021
$1,075
June 22, 2021
June 25, 2021
$1,100
September 22, 2021
September 27, 2021
$1,125
December 22, 2021
December 28, 2021
$1,150
March 22, 2022
March 25, 2022
$1,175
June 22, 2022
June 27, 2022
$1,200
September 22, 2022
September 27, 2022
$1,225
December 22, 2022
December 28, 2022
$1,250
March 22, 2023
March 27, 2023
$1,275
June 22, 2023
June 27, 2023
$1,300
September 22, 2023
September 27, 2023
$1,325
December 22, 2023
December 28, 2023
$1,350
March 22, 2024
March 27, 2024
$1,375
June 24, 2024
June 27, 2024
$1,400
September 23, 2024
September 26, 2024
$1,425
December 23, 2024
December 27, 2024
$1,450
March 24, 2025
March 27, 2025
$1,475
June 23, 2025 (the "Valuation
June 26, 2025 (the "Maturity

Date")
Date")
$1,500
Trade Date ("Pricing
June 22, 2020
Date"):
Issue Date:
June 25, 2020
Valuation Date:
June 23, 2025
Maturity Date:
June 26, 2025
Initial Level:
The closing level of the Reference Asset on the Trade Date, as specified on the cover page of this
pricing supplement.
Final Level:
The closing level of the Reference Asset on the Valuation Date.
Barrier Level:
65% of the Initial Level, as specified on the cover page of this pricing supplement.
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Payment at Maturity (if If the Notes are not cal ed on any Observation Date (including the Valuation Date), we wil pay you
not previously cal ed
at maturity an amount based on the Final Level:
and held to maturity):
· If the Final Level is greater than or equal to the Barrier Level, we wil pay you a cash
payment equal to the principal amount.
· If the Final Level is below the Barrier Level, you wil receive at maturity, for each $1,000 in
principal amount, a cash payment equal to:
$1,000 + ($1,000 x Percentage Change)
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 Reference Asset from the Trade Date to the
Valuation Date. Investors in the Notes could lose some or al of their investment if the Final Level
is less than the Barrier Level.
Percentage Change:
Final Level Initial Level
Initial Level
Market Disruption
The occurrence of a market disruption event (or a non-trading day) as to the Reference
Events:
Asset wil result in the postponement of an Observation Date or the Valuation Date, as
described in the product prospectus supplement.
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 a cal able pre-paid cash-
settled derivative contract linked to the Reference Asset 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 7, 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 of your Notes.
Listing:
The Notes wil not be listed on any securities exchange.
Clearance and
DTC global (including through its indirect participants Euroclear and Clearstream, Luxembourg as
Settlement:
described under "Description of Debt Securities--Ownership and Book-Entry Issuance" in the
prospectus dated September 7, 2018).
Terms Incorporated in Al 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 7, 2018, as modified
by this pricing supplement.
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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 7, 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 wil have the meanings given to them in the product prospectus supplement. In the event of any conflict, this
pricing supplement wil 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 al prior or
contemporaneous oral statements as wel 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 careful y 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 7,
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 fol ows (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-EI-1 dated September 7, 2018:
https://www.sec.gov/Archives/edgar/data/1000275/000114036118038044/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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HYPOTHETICAL EXAMPLES
The table set out below is included for illustration purposes only. The table illustrates payment upon an automatic call and the Payment
at Maturity of the Notes for a hypothetical range of performance for the Reference Asset, assuming the following terms:
Hypothetical Initial Level:
1,000*
Hypothetical Barrier Level:
650, which is 65% of the hypothetical Initial Level
Principal Amount:
$1,000 per Note

Call Return Rate:
10% per annum (2.50% per quarter)

Call Amounts:
$1,025 if called on the first Observation Date,

increasing by $25 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
does not represent the actual Initial Level. The actual Initial Level is set forth on the cover page of this pricing supplement.
Summary of the Hypothetical Examples

Notes Are Called on an Observation Date
Notes Are Not Called on Any
Observation Date

Example 1
Example 2
Example 3
Example 5
Example 6
Initial Level
1,000
1,000
1,000
1,000
1,000
Closing Level on the First
Observation Date
1,250
900
950
975
950
Closing Level on the Second
Observation Date
N/A
1,025
950
950
850
Closing Levels on the Third
through 19th Observation Dates
N/A
N/A
Various, below Initial Level
Various, below Initial Level
Various, below Initial Level
Closing Level on the Final
Observation Date
N/A
N/A
1,100
900
500
Percentage Change of the
Reference Asset
N/A
N/A
10%
-10%
-50%
Cal Amount
$1,500 (paid on the maturity
$1,025
$1,050
N/A
N/A
date)
Payment at Maturity (if not
previously cal ed)
N/A
N/A
N/A
$1,000
$500
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Hypothetical Examples of Amounts Payable Upon an Automatic Call
The following hypothetical examples illustrate payments of the Call Amounts set forth in the table in the "Summary" section above.
Example 1: The level of the Reference Asset increases as of the first Observation Date. Because the closing level of the
Reference Asset on the first Observation Date is greater than the Initial Level, the investor receives on the applicable Call Settlement
Date a cash payment of $1,025, representing the corresponding Call Amount. After the Notes are called, they will no longer remain
outstanding and there will be no further payments on the Notes.
Example 2: The level of the Reference Asset decreases from the Initial Level to its closing level on the first Observation Date,
but the level of the Reference Asset increases from the Initial Level as of the second Observation Date. Because the Reference
Asset has a closing level on the first Observation Date that is less than the Initial Level, the Notes are not called on the first Observation
Date. However, the closing level of the Reference Asset on the second Observation Date is greater than the Initial Level; as a result, the
investor receives on the applicable Call Settlement Date a cash payment of $1,050, representing the corresponding Call Amount. After
the Notes are called, they will no longer remain outstanding and there will be no further payments on the Notes.
Example 3: The Notes are not called on any of the first 19 Observation Dates, but the Final Level has increased by 10% as of
the Valuation Date. Because the Notes are not called on any of the preceding Observation Dates and the closing level of the Reference
Asset on the Valuation Date is greater than the Initial Level, the investor receives on the Maturity Date a cash payment of $1,500,
representing the corresponding Call Amount for the final Observation Date.
Hypothetical Examples of Amounts Payable at Maturity
The following hypothetical examples illustrate how the payments at maturity set forth in the table above are calculated, assuming the
Notes have not been called.
Example 4: The level of the Reference Asset decreases by 10% from the Initial Level to the Final Level of 900. The Notes are not
called on any Observation Date because the closing level of the Reference Asset is less than the Initial Level on each Observation Date
(including the Valuation Date). Because the Final Level is less than the Initial Level but greater than the Barrier Level, the investor
receives at maturity a cash payment equal to the principal amount, despite the decrease in the level of Reference Asset.
Example 5: The level of the Reference Asset is 500 on the Valuation Date, which is less than the Barrier Level. The Notes are not
called on any Observation Date because the closing level of the Reference Asset is below the Initial Level on each Observation Date
(including the Valuation Date). Because the Final Level of the Reference Asset is less than the Barrier Level, we will pay only $500 for
each $1,000 in the principal amount of the Notes, calculated as follows:
Principal Amount + (Principal Amount x Percentage Change)
= $1,000 + ($1,000 x -50%) = $1,000 - $500 = $500
* * *
The payments shown above are entirely hypothetical; they are based on levels of the Reference Asset 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 the Reference Asset.
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SELECTED RISK CONSIDERATIONS
An investment in the Notes involves significant risks. Investing in the Notes is not equivalent to investing directly in the
Reference Asset. 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 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 level of the Reference Asset between the Trade Date and the Valuation Date. If the Notes are
not automatical y cal ed and the Final Level on the Valuation Date is less than the Barrier Level, 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 level from the Trade Date to the Valuation Date.
·
The Notes Are Subject to an Automatic Call -- If, on any Observation Date, the closing level of the Reference
Asset is greater than or equal to the Initial Level, 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 the applicable Cal Amount on the corresponding Cal Settlement Date. You wil not receive any payments
after the Cal Settlement Date and you wil not receive any return on the Notes that exceeds the applicable Cal
Amount set forth above, even if the level of the Reference Asset increases substantial y. 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.
·
The Notes Do Not Pay Interest and Your Return May Be Lower than the Return on a Conventional Debt
Security of Comparable Maturity  There wil 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 wil 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.
·
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 any Cal Amounts, if payable, and the amount due on the maturity date, is dependent upon our ability to
repay our obligations on the applicable payment date. This wil be the case even if the level of the Reference Asset
increases after the Trade Date. No assurance can be given as to what our financial condition wil be at any time
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 Bank 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 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.
·
Owning the Notes Is Not the Same as Owning the Securities Represented by the Reference Asset -- The
return on your Notes is unlikely to reflect the return you would realize if you actual y owned the securities
represented by the Reference Asset. For instance, you wil 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
wil not have voting rights or any other rights that holders of the securities represented by the Reference Asset
may have. Furthermore, the Reference Asset may appreciate substantial y during the term of the Notes, while your
potential return wil be limited to the applicable fixed Cal Amounts.
·
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 level of the Reference Asset, the
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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 the Notes.
·
An Investment in the Notes Is Subject to Risks Associated in Investing in Stocks With a Small Market
Capitalization -- The Russel 2000® Index consists of stocks issued by companies with relatively smal market
capitalizations. These companies often have greater stock price volatility, lower trading volume and less liquidity
than large-capitalization companies. As a result, the level of the Russel 2000® Index may be more volatile than
that of a market measure that does not track solely smal -capitalization stocks. Stock prices of smal -capitalization
companies are also general y more vulnerable than those of large-capitalization companies to adverse business
and economic developments, and the stocks of smal -capitalization companies may be thinly traded, and be less
attractive to many investors if they do not pay dividends. In addition, smal capitalization companies are often less
wel -established and less stable financial y than large-capitalization companies and may depend on a smal
number of key personnel, making them more vulnerable to loss of those individuals. Smal capitalization
companies tend to have lower revenues, less diverse product lines, smal er shares of their target markets, fewer
financial resources and fewer competitive strengths than large-capitalization companies. These companies may
also be more susceptible to adverse developments related to their products or services.
·
Inconsistent Research -- We or our affiliates may issue research reports on securities that are, or may become,
components of the Reference Asset. We may also publish research from time to time on financial markets and
other matters that may influence the level of the Reference Asset or the value of the Notes, or express opinions or
provide recommendations that may be inconsistent with purchasing or holding the Notes or with the investment
view implicit in the Notes or the Reference Asset. You should make your own independent investigation of the
merits of investing in the Notes and the Reference Asset.
·
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.
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RBC Capital Markets, LLC
https://www.sec.gov/Archives/edgar/data/1000275/000114036120014630/form424b2.htm
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6/25/2020
https://www.sec.gov/Archives/edgar/data/1000275/000114036120014630/form424b2.htm

Auto-Cal able Barrier Notes
Royal Bank of Canada
INFORMATION REGARDING THE REFERENCE ASSET
Al disclosures contained in this pricing supplement regarding the Reference Asset, including, without limitation, its make-
up, method of calculation, and changes in its components, have been derived from publicly available sources. The
information reflects the policies of, and is subject to change by, the applicable index sponsor. This sponsor has no
obligation to continue to publish, and may discontinue publication of, the Reference Asset. The consequences of the index
sponsor discontinuing publication of the Reference Asset are discussed in the section of the product prospectus
supplement entitled "General Terms of the Notes--Unavailability of the Level of the Reference Asset." Neither we nor
RBCCM accepts any responsibility for the calculation, maintenance or publication of the Reference Asset or any successor
index.
Russell 2000® Index ("RTY")
The RTY was developed by Russel Investments ("Russel ") before FTSE International Limited and Russel combined in
2015 to create FTSE Russel , which is whol y owned by London Stock Exchange Group. Russel began dissemination of
the RTY (Bloomberg L.P. index symbol "RTY") on January 1, 1984. FTSE Russel calculates and publishes the RTY. The
RTY was set to 135 as of the close of business on December 31, 1986. The RTY is designed to track the performance of
the smal capitalization segment of the U.S. equity market. As a subset of the Russel 3000® Index, the RTY consists of the
smal est 2,000 companies included in the Russel 3000® Index. The Russel 3000® Index measures the performance of
the largest 3,000 U.S. companies, representing approximately 98% of the investable U.S. equity market. The RTY is
determined, comprised, and calculated by FTSE Russel without regard to the Notes.
Selection of Stocks Underlying the RTY
Al companies eligible for inclusion in the RTY must be classified as a U.S. company under FTSE Russel 's country-
assignment methodology. If a company is incorporated, has a stated headquarters location, and trades on a standard
exchange in the same country (American Depositary Receipts and American Depositary Shares are not eligible), then the
company is assigned to its country of incorporation. If any of the three factors are not the same, FTSE Russel defines
three Home Country Indicators ("HCIs"): country of incorporation, country of headquarters, and country of the most liquid
exchange (as defined by a two-year average daily dol ar trading volume) ("ADDTV") from al exchanges within a country.
Using the HCIs, FTSE Russel compares the primary location of the company's assets with the three HCIs. If the primary
location of its assets matches any of the HCIs, then the company is assigned to the primary location of its assets. If there
is insufficient information to determine the country in which the company's assets are primarily located, FTSE Russel wil
use the primary location of the company's revenue for the same cross-comparison and assigns the company to the
appropriate country in a similar fashion. FTSE Russel uses the average of two years of assets or revenues data to reduce
potential turnover. If conclusive country details cannot be derived from assets or revenues data, FTSE Russel wil assign
the company to the country in which its headquarters are located unless the country is a Benefit Driven Incorporation "BDI"
country. If the country in which its headquarters is located is a BDI, it wil be assigned to the country of its most liquid stock
exchange. BDI countries include: Anguil a, Antigua and Barbuda, Aruba, Bahamas, Barbados, Belize, Bermuda, Bonaire,
British Virgin Islands, Cayman Islands, Channel Islands, Cook Islands, Curacao, Faroe Islands, Gibraltar, Guernsey, Isle of
Man, Jersey, Liberia, Marshal Islands, Panama, Saba, Sint Eustatius, Sint Maarten, and Turks and Caicos Islands. For
any companies incorporated or headquartered in a U.S. territory, including countries such as Puerto Rico, Guam, and U.S.
Virgin Islands, a U.S. HCI is assigned. "N Shares" issued by companies control ed by mainland Chinese entities,
companies or individuals and that are incorporated outside of China are not eligible for inclusion.
Al securities eligible for inclusion in the RTY must trade on a major U.S. exchange. Stocks must have a closing price at or
above $1.00 on their primary exchange on the "rank day" in May of each year (timetable is announced each spring) to be
eligible for inclusion during annual reconstitution. However, in order to reduce unnecessary turnover, if an existing
member's closing price is less than $1.00 on the last day of May, it wil be considered eligible if the average of the daily
closing prices (from its primary exchange) during the month of May is equal to or greater than $1.00. FTSE Russel adds
initial public offerings (IPOs) each quarter to ensure that new additions to the institutional investing opportunity set are
reflected in representative indexes. A stock added during the quarterly IPO process is considered a new index addition,
and therefore must have a closing price on its primary exchange at or above $1.00 on the last day of the eligibility period in
order to qualify for index inclusion. If an existing index member does not trade on the rank day, it must price at $1.00 or
above on another eligible U.S. exchange to remain eligible.
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RBC Capital Markets, LLC
https://www.sec.gov/Archives/edgar/data/1000275/000114036120014630/form424b2.htm
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