STEP INCOME SECURITIES® (STEPS®)
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Issuer
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Royal Bank of Canada (“RBC”)
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Principal Amount
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$10.00 per unit
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Term
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Approximately one year and one week
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Market Measure
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Common Stock of TESLA, Inc. (the “Underlying Company”) (Nasdaq symbol: TSLA)
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Payout Profile at
Maturity
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• A payment of [$0.10 to $0.50] per
unit if the Market Measure increases to or above 113.00% of the Starting Value
• 1-to-1
downside exposure to decreases in the Market Measure beyond a 10.00% decline, with up to 90% of your principal at risk
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Step Level
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113.00% of the starting value of the Market Measure
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Step Payment
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[$0.10 to $0.50] per unit, a [1.00% to 5.00%] return over the principal amount, to be determined on the pricing date
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Threshold Value
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90% of the Starting Value of the Market Measure
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Investment Considerations
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This investment is designed for investors who anticipate that the value of the Market Measure will increase to or above the Step Level, are willing to forgo full upside participation above
the Step Level in exchange for earning fixed interest payments and potentially a fixed Step Payment, and are willing to accept downside risk below a threshold.
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Preliminary Offering Documents
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Exchange Listing
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No
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Depending on the performance of the Market Measure as measured shortly before the maturity date, your investment may result in a loss; there is no guaranteed return of principal.
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Payments on the notes, including repayment of principal, are subject to the credit risk of RBC. If RBC becomes insolvent or is unable to pay its obligations, you may lose your entire investment.
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Your investment return is limited to the return represented by the periodic interest payments over the term of the notes and the Step Payment, if any, and may be less than a comparable investment directly in
the Market Measure.
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The initial estimated value of the notes on the pricing date will be less than their public offering price.
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If you attempt to sell the notes prior to maturity, their market value may be lower than both the public offering price and the initial estimated value of the notes on the pricing date.
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You will have no rights of a holder of the Market Measure, and you will not be entitled to receive any shares of the Market Measure or dividends or other distributions by the Underlying Company.
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The issuer, BofAS and their respective affiliates do not control the Underlying Company and have not verified any disclosure made by the Underlying Company. The Underlying Company will have no obligations
relating to the notes.
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The Redemption Amount will not be adjusted for all corporate events that could affect the Market Measure.
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