Royal Bank of Canada filed a free writing prospectus on November 3, 2026, disclosing terms for Auto-Callable Contingent Coupon Barrier Notes with Memory Coupon linked to the common stock of Halliburton Company, with a maturity date of November 21, 2029.

Key Highlights

  • Issuer and underlier: Royal Bank of Canada is the issuer; the notes are linked to the common stock of Halliburton Company (Bloomberg symbol "HAL UN"), with CUSIP 78018DQ67.
  • Contingent coupon rate: 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.
  • Barrier and coupon threshold: Both are set at 70% of the Initial Underlier Value.
  • Auto-call feature: Notes will be automatically called at 100% of principal plus any coupon amounts due if the underlier closes at or above the Initial Underlier Value on any quarterly Call Observation Date, beginning approximately six months after the Trade Date.
  • 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.
  • Initial estimated value: Expected to be between $908.78 and $958.78 per $1,000 principal amount, which the filing states will be less than the public offering price.
  • Key dates: Trade Date is November 16, 2026; Issue Date is November 19, 2026; Valuation Date is November 16, 2029; Maturity Date is November 21, 2029.

Structure and Payment Terms of RBC's Halliburton-Linked Notes

According to the filing, Royal Bank of Canada is offering Auto-Callable Contingent Coupon Barrier Notes with Memory Coupon linked to Halliburton Company common stock under Registration Statement No. 333-275898, filed pursuant to Rule 433. The notes carry a quarterly coupon structure: investors receive a contingent coupon on each Coupon Payment Date only if the underlier's closing value equals or exceeds the Coupon Threshold on the immediately preceding Coupon Observation Date. The filing describes a memory feature whereby a coupon not paid on one date may be paid on a later Coupon Payment Date if the threshold condition is met at that time. The filing explicitly notes that investors "may not receive any Contingent Coupons during the term of the Notes."

The auto-call mechanism, as described in the filing, activates 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. In that case, investors receive $1,000 per $1,000 principal amount plus the applicable coupon and any unpaid coupons, with no further payments made. If the notes are not called and the Final Underlier Value at the Valuation Date of November 16, 2029, is at or above the Barrier Value (70% of the Initial Underlier Value), investors receive their full principal plus any coupons due. If the Final Underlier Value falls below the Barrier Value, investors incur a loss proportional to the decline from the Initial Underlier Value, and the filing states investors could "lose a substantial portion or all of your principal amount at maturity."

The filing discloses that the initial estimated value of the notes, as of the Trade Date, is expected to be between $908.78 and $958.78 per $1,000 principal amount and will be less than the public offering price. The filing lists multiple risk considerations, including credit risk tied to Royal Bank of Canada, potential conflicts of interest involving RBCCM as calculation agent, limited anti-dilution protection, and uncertainty regarding U.S. federal income tax consequences.

What Was Disclosed

Royal Bank of Canada disclosed the preliminary terms of structured notes linked to Halliburton common stock, covering coupon mechanics, auto-call conditions, barrier protection, principal risk at maturity, key dates, and an initial estimated value range of $908.78 to $958.78 per $1,000 principal amount.