Royal Bank of Canada
Market Linked Securities
Filed Pursuant to Rule 433
Registration No. 333-208507
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Market Linked Securities – Leveraged Upside Participation and Fixed Percentage Buffered Downside Principal at Risk Securities Linked to the EURO STOXX 50® Index due October 3, 2022
Term Sheet to Preliminary Pricing Supplement No. WFC123 dated September 7, 2018
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Issuer
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Royal Bank of Canada
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Term
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Approximately 4 years
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Index
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EURO STOXX 50® Index
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Pricing Date
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September 28, 2018*
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Original Issue Date
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October 3, 2018*
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Principal Amount
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$1,000 per security (each security will be offered at an initial public offering price of $1,000)
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Payment at Maturity
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See “How the maturity payment amount is calculated” on page 3
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Maturity Date
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October 3, 2022*
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Initial Index Level
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The closing level of the Index on the pricing date
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Final Index Level
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The closing level of the Index on the valuation date
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Buffer Level
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70% of the Initial Index Level
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Participation Rate
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[150%-160%], to be determined on the pricing date
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Valuation Date
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September 26, 2022*
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Calculation Agent
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RBC Capital Markets, LLC, a wholly-owned subsidiary of the issuer
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Denominations
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$1,000 and any integral multiple of $1,000
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Underwriting Discount and Commission
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Up to 4.20%, of which dealers, including those using the trade name Wells Fargo Advisors (“WFA”), may receive a selling concession of 2.25% and WFA will receive a distribution expense fee of 0.075%
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CUSIP
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78013XC63
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Linked to the EURO STOXX 50® Index.
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Unlike ordinary debt securities, the securities do not pay interest or repay a fixed amount of principal at maturity. Instead, the securities provide for a payment at maturity that may be greater than, equal to or less than the initial public offering price of the securities, depending on the performance of the Index from its Initial Index Level to its Final Index Level.
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Investors may lose up to 70% of the initial public offering price
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All payments on the securities are subject to the credit risk of Royal Bank of Canada, and you will have no ability to pursue the issuer of any securities represented by the Index for payment; if Royal Bank of Canada defaults on its obligations, you could lose some or all of your investment
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No periodic interest payments or dividends
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No exchange listing; designed to be held to maturity
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Hypothetical
Final Index Level
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Percentage Change from the
Hypothetical Initial Index Level
to the Hypothetical
Final Index Level
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Hypothetical Maturity
Payment Amount per Security
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Hypothetical Pre-Tax
Total Rate of Return on
the Securities
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0.00
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-100.00%
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$300.00
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-70.00%
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300.00
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-90.00%
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$400.00
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-60.00%
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600.00
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-80.00%
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$500.00
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-50.00%
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900.00
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-70.00%
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$600.00
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-40.00%
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1,200.00
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-60.00%
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$700.00
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-30.00%
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1,350.00
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-55.00%
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$750.00
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-25.00%
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1,500.00
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-50.00%
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$800.00
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-20.00%
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1,650.00
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-45.00%
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$850.00
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-15.00%
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1,800.00
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-40.00%
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$900.00
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-10.00%
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2,100.00
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(1)
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-30.00%
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$1,000.00
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0.00%
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2,400.00
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-20.00%
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$1,000.00
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0.00%
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2,700.00
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-10.00%
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$1,000.00
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0.00%
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3,000.00
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(2)
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0.00%
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$1,000.00
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0.00%
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3,300.00
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10.00%
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$1,155.00
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15.50%
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3,600.00
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20.00%
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$1,310.00
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31.00%
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3,900.00
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30.00%
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$1,465.00
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46.50%
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4,200.00
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40.00%
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$1,620.00
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62.00%
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4,500.00
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50.00%
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$1,775.00
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77.50%
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4,800.00
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60.00%
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$1,930.00
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93.00%
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5,100.00
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70.00%
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$2,085.00
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108.50%
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5,400.00
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80.00%
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$2,240.00
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124.00%
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5,700.00
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90.00%
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$2,395.00
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139.50%
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6,000.00
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100.00%
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$2,550.00
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155.00%
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(1) |
This is the hypothetical Buffer Level.
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(2) |
This is the hypothetical Initial Index Level.
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If the Final Index Level is greater than the Initial Index Level, the maturity payment amount per security will equal:
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If the Final Index Level is equal to or less than the Initial Index Level but greater than or equal to the Buffer Level, the maturity payment amount per security will equal the issue price of $1,000.00
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If the Final Index Level is less than the Buffer Level, the maturity payment amount per security will equal:
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Your investment may result in a loss of up to 70% of your principal
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You will not receive interest payments on the securities
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Your yield may be lower than the yield on a standard debt security of comparable maturity
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Owning the securities is not the same as owning the common stocks represented by the Index
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There may not be an active trading market for the securities
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The amount to be paid at maturity is not linked to the level of the Index at any time other than the valuation date
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Many factors affect the market value of the securities
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The securities will be debt obligations of Royal Bank of Canada. No other company or entity will be responsible for payments under the securities
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The securities will be subject to risks, including non-payment in full, under Canadian bank resolution powers
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The Indenture relating to the securities will provide only limited acceleration and enforcement rights for the securities
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The circumstances surrounding the exercise of the Canadian bank resolution powers are unpredictable and can be expected to have an adverse effect on the securities
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Changes that affect the Index will affect the market value of the securities and the maturity payment amount
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We have no affiliation with the sponsor of the Index and will not be responsible for any actions taken by the sponsor
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Historical levels of the Index should not be taken as an indication of the future levels of the Index during the term of the securities
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Hedging transactions may affect the return on the securities
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Our initial estimated value of the securities will be less than the initial public offering price
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The price, if any, at which you may be able to sell your securities prior to maturity may be less than the initial public offering price and our initial estimated value
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The initial estimated value of the securities will be an estimate only, calculated as of the time the terms of the securities are set
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Potential conflicts of interest could arise
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The calculation agent may postpone the valuation date and, therefore, determination of the Final Index Level and the maturity date if a market disruption event occurs on the valuation date
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There are potential conflicts of interest between you and the calculation agent
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Risks associated with non-U.S. companies
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The securities will not be adjusted for changes in exchange rates
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The tax treatment of the securities is uncertain and gain on the securities may be treated as ordinary income under the constructive ownership rules
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