Royal Bank of Canada filed a free writing prospectus (FWP) disclosing the terms of Auto-Callable Contingent Coupon Barrier Notes linked to the Class A common stock of Meta Platforms, Inc., with a maturity date of November 21, 2029, filed pursuant to Rule 433 under Registration Statement No. 333-275898.

Key Highlights

  • Underlier: The Class A common stock of Meta Platforms, Inc. (Bloomberg symbol "META UW"), with CUSIP 78018DQ83.
  • Contingent Coupon: If payable, at least $26.875 per $1,000 principal amount per quarter, corresponding to a rate of at least 2.6875% per quarter or at least 10.75% per annum, to be determined on the Trade Date (November 16, 2026).
  • Barrier and Coupon Threshold: Both set at 60% of the Initial Underlier Value.
  • Initial Estimated Value: Expected to be between $910.04 and $960.04 per $1,000 principal amount, and will be less than the public offering price.
  • Auto-Call Feature: Notes may be automatically called at 100% of principal plus any due coupons on any quarterly Call Observation Date beginning approximately six months after the Trade Date, if the underlier closes at or above the Initial Underlier Value.
  • Principal Risk at Maturity: If not called and the Final Underlier Value is below the Barrier Value, investors lose 1% of principal for each 1% the Final Underlier Value is below the Initial Underlier Value.

Terms and Structure of RBC's Meta-Linked Barrier Notes

According to the filing, Royal Bank of Canada ("RBC") is the issuer of these Auto-Callable Contingent Coupon Barrier Notes with a Memory Coupon feature. The Trade Date is November 16, 2026, the Issue Date is November 19, 2026, the Valuation Date is November 16, 2029, and the Maturity Date is November 21, 2029. The notes are linked to the closing value of the Class A common stock of Meta Platforms, Inc.

The filing describes a memory coupon mechanism: if a Contingent Coupon is not paid on a given quarterly Coupon Payment Date because the underlier closed below the Coupon Threshold on the preceding Coupon Observation Date, that unpaid coupon may still be paid on a later Coupon Payment Date on which a coupon is otherwise payable. The filing states explicitly that investors "may not receive any Contingent Coupons during the term of the Notes." Both the Coupon Threshold and the Barrier Value are set at 60% of the Initial Underlier Value, which is the closing value of the underlier on the Trade Date.

The filing discloses that the initial estimated value of the notes is expected to be between $910.04 and $960.04 per $1,000 principal amount and "will be less than the public offering price of the Notes." The filing identifies multiple risk considerations, including that investors will not participate in any appreciation of the underlier, that payments are subject to RBC's credit risk, that there may not be an active trading market for the notes, and that U.S. federal income tax consequences "are uncertain." The filing also notes that RBCCM's role as Calculation Agent may create conflicts of interest.

What Was Disclosed

RBC filed a free writing prospectus detailing the preliminary terms of structured notes linked to Meta Platforms stock, including coupon rates, barrier levels, call mechanics, estimated value range, and a summary of material risk considerations associated with the offering.