Royal Bank of Canada filed a free writing prospectus on November 5, 2026, disclosing the term sheet for Market Linked Securities auto-callable with contingent coupon and memory feature linked to the common stock of Generac Holdings Inc., due November 9, 2028.

Key Highlights

  • Underlying asset: The securities are linked to the common stock of Generac Holdings Inc.
  • Contingent coupon rate: At least 16.25% per annum, to be determined on the pricing date of November 6, 2026.
  • Coupon and downside threshold: Both set at 60% of the starting value.
  • Face amount: $1,000 per security, in denominations of $1,000 and any integral multiple thereof.
  • Initial estimated value: Expected to be between $922.80 and $972.80 per security, which the filing states will be less than the original offering price.
  • Agent discount: Up to 2.075%, with dealers using the Wells Fargo Advisors trade name eligible for a selling concession of up to 1.50%.
  • CUSIP: 78018FAV4; maturity date is November 9, 2028.

Structure and Key Terms of the Generac-Linked Securities

According to the filing, Royal Bank of Canada is the issuer of these principal-at-risk securities under Registration Statement No. 333-275898. The pricing date is November 6, 2026, the issue date is November 12, 2026, and the final calculation day is November 6, 2028. The calculation agent is RBC Capital Markets, LLC, described in the filing as an affiliate of the issuer. Contingent coupon payments are made monthly, on the third business day following each calculation day, with calculation days generally falling on the 6th of each month beginning December 2026.

The filing discloses an automatic call feature: if the closing value of the Underlying Stock on any monthly calculation day from February 2027 through October 2028, inclusive, is greater than or equal to the starting value, the securities are automatically called and the holder receives the face amount plus any contingent coupon payments due. If the securities are not called and the ending value is at or above the downside threshold value of 60% of the starting value, the holder receives $1,000 per security at maturity. If the ending value falls below that threshold, the holder receives a number of shares of Generac common stock equal to the share delivery amount, with fractional shares paid in cash. The filing states that in this scenario, the shares received "will likely be worth significantly less than the face amount of your securities and could be worth nothing."

The memory feature means that if contingent coupon payments are missed on one or more calculation days because the stock closed below the coupon threshold value, those unpaid amounts are carried forward and paid on the next calculation day when the stock closes at or above the threshold, without interest on previously unpaid amounts, the filing states. The filing notes that any return on the securities is limited to contingent coupon payments, and holders "will not participate in any appreciation of the Underlying Stock."

What Was Disclosed

Royal Bank of Canada disclosed the full term sheet for auto-callable, principal-at-risk securities linked to Generac Holdings Inc. common stock, including coupon terms, call mechanics, downside exposure, estimated value range, agent discounts, and selected risk considerations.