Obbligazione Canadian Imperial Bank 0% ( US78014F2882 ) in USD

Emittente Canadian Imperial Bank
Prezzo di mercato 100 USD  ▲ 
Paese  Canada
Codice isin  US78014F2882 ( in USD )
Tasso d'interesse 0%
Scadenza 26/02/2021 - Obbligazione č scaduto



Prospetto opuscolo dell'obbligazione Royal Bank of Canada US78014F2882 in USD 0%, scaduta


Importo minimo 1 000 USD
Importo totale 35 862 000 USD
Cusip 78014F288
Standard & Poor's ( S&P ) rating N/A
Moody's rating N/A
Descrizione dettagliata La Royal Bank of Canada (RBC) č una delle pių grandi banche del Canada, con attivitā a livello globale nei settori della gestione patrimoniale, dei servizi finanziari e dell'investimento.

The Obbligazione issued by Canadian Imperial Bank ( Canada ) , in USD, with the ISIN code US78014F2882, pays a coupon of 0% per year.
The coupons are paid 2 times per year and the Obbligazione maturity is 26/02/2021







424B2 1 form424b2.htm BASKET OF THREE FINANCIAL 14M ARN 78014F288

File d Pursua nt t o Rule 4 2 4 (b)(2 )
Re gist ra t ion St a t e m e nt N o. 3 3 3 -2 2 7 0 0 1
(T o Prospe c t us da t e d Se pt e m be r 7 , 2 0 1 8 ,
Prospe c t us Supple m e nt da t e d Se pt e m be r 7 , 2 0 1 8 a nd
Produc t Supple m e nt ST OCK ARN -1 da t e d N ove m be r 3 0 , 2 0 1 8 )

3,586,178 Units
Pricing Date
December 19, 2019
$10 principal amount per unit
Settlement Date
December 27, 2019
CUSIP No. 78014F288
Maturity Date
February 26, 2021






Ac c e le ra t e d Re t urn N ot e sŪ Link e d t o a Ba sk e t of T hre e Fina nc ia l Se c t or
St oc k s
? Maturity of approximately 14 months
? 3-to-1 upside exposure to increases in the Basket, subject to a capped return of 22.93%
? The Basket is comprised of the common stocks of each of Citigroup Inc., JPMorgan Chase & Co., and Morgan Stanley (the "Basket Stocks"). Each of the Basket Stocks was given an approximately equal weight
? 1-to-1 downside exposure to decreases in the Basket, with up to 100% of your investment at risk
? All payments occur at maturity and are subject to the credit risk of Royal Bank of Canada
? No periodic interest payments
? In addition to the underwriting discount set forth below, the notes include a hedging-related charge of $0.075 per unit. See "Structuring the Notes"
? Limited secondary market liquidity, with no exchange listing
? The notes are unsecured debt securities and are not savings accounts or insured deposits of a bank. The notes are not insured or guaranteed by the Canada Deposit Insurance Corporation, the U.S. Federal Deposit
Insurance Corporation, or any other governmental agency of Canada or the United States



T he not e s a re be ing issue d by Roya l Ba nk of Ca na da ("RBC"). T he re a re im port a nt diffe re nc e s be t w e e n t he not e s a nd a c onve nt iona l de bt se c urit y, inc luding diffe re nt
inve st m e nt risk s a nd c e rt a in a ddit iona l c ost s. Se e "Risk Fa c t ors" a nd "Addit iona l Risk Fa c t ors" be ginning on pa ge s T S -6 a nd T S -7 of t his t e rm she e t a nd "Risk Fa c t ors"
be ginning on pa ge PS -6 of produc t supple m e nt ST OCK ARN -1 .
T he init ia l e st im a t e d va lue of t he not e s a s of t he pric ing da t e is $ 9 .7 2 1 5 pe r unit , w hic h is le ss t ha n t he public offe ring pric e list e d be low . See "Summary" on the following page,
"Risk Factors" beginning on page TS- 6 of this term sheet and "Structuring the Notes" on page TS- 14 of this term sheet for additional information. The actual value of your notes at any time will reflect many
factors and cannot be predicted with accuracy.
None of the Securities and Exchange Commission (the "SEC"), any state securities commission, or any other regulatory body has approved or disapproved of these securities or determined if this Note Prospectus
(as defined below) is truthful or complete. Any representation to the contrary is a criminal offense.

Per Unit
Total
Public offering price
$10.00
$35,861,780.00
Underwriting discount
$0.20
$717,235.60
Proceeds, before expenses, to RBC
$9.80
$35,144,544.40
T he not e s:
Are N ot FDI C I nsure d
Are N ot Ba nk Gua ra nt e e d
M a y Lose V a lue
BofA Se c urit ie s
December 19, 2019
Accelerated Return NotesŪ
Linked to a Basket of Three Financial Sector Stocks, due February 26, 2021
Summary
The Accelerated Return NotesŪ Linked to a Basket of Three Financial Sector Stocks, due February 26, 2021 (the "notes") are our senior unsecured debt securities. The notes are not guaranteed or insured by the
Canada Deposit Insurance Corporation or the U.S. Federal Deposit Insurance Corporation or secured by collateral. T he not e s w ill ra nk e qua lly w it h a ll of our ot he r unse c ure d a nd
unsubordina t e d de bt . Any pa ym e nt s due on t he not e s, inc luding a ny re pa ym e nt of princ ipa l, w ill be subje c t t o t he c re dit risk of RBC. T he not e s a re not ba il-ina ble not e s
(a s de fine d in t he prospe c t us supple m e nt ). The notes provide you a leveraged return, subject to a cap, if the Ending Value of the Market Measure, which is the basket of three financial sector stocks
described below (the "Basket"), is greater than its Starting Value. If the Ending Value is less than the Starting Value, you will lose all or a portion of the principal amount of your notes. Any payments on the notes
will be calculated based on the $10 principal amount per unit and will depend on the performance of the Basket, subject to our credit risk. See "Terms of the Notes" below.
The Basket is comprised of the common stocks of Citigroup Inc., JPMorgan Chase & Co., and Morgan Stanley (each, a "Basket Stock"). On the pricing date, each Basket Stock was given an approximately equal
weight.
The economic terms of the notes (including the Capped Value) are based on our internal funding rate, which is the rate we would pay to borrow funds through the issuance of market-linked notes and the economic
terms of certain related hedging arrangements. Our internal funding rate is typically lower than the rate we would pay when we issue conventional fixed or floating rate debt securities. This difference in funding
rate, as well as the underwriting discount and the hedging related charge described below, reduced the economic terms of the notes to you and the initial estimated value of the notes on the pricing date. Due to
these factors, the public offering price you pay to purchase the notes is greater than the initial estimated value of the notes.
On the cover page of this term sheet, we have provided the initial estimated value for the notes. This initial estimated value was determined based on our and our affiliates' pricing models, which take into
consideration our internal funding rate and the market prices for the hedging arrangements related to the notes. For more information about the initial estimated value and the structuring of the notes, see
"Structuring the Notes" on page TS-14.
https://www.sec.gov/Archives/edgar/data/1000275/000114036119023093/form424b2.htm[12/23/2019 3:57:22 PM]


Terms of the Notes
Redemption Amount Determination
I ssue r:
Royal Bank of Canada ("RBC")
On the maturity date, you will receive a cash payment per unit determined as follows:
Princ ipa l
$10.00 per unit
Am ount :
T e rm :
Approximately 14 months
M a rk e t M e a sure :
An approximately equally weighted basket of three financial sector stocks

comprised of the common stock of Citigroup Inc. (NYSE symbol: "C"), JPMorgan
Chase & Co. (NYSE symbol: "JPM") and Morgan Stanley (NYSE symbol: "MS")
(each, an "Underlying Company").
St a rt ing V a lue :
100.00
Ending V a lue :
The value of the Basket on the calculation day. The calculation day is subject to

postponement in the event of Market Disruption Events, as described beginning
on page PS-18 of product supplement STOCK ARN-1.
Pa rt ic ipa t ion
300%
Ra t e :
Ca ppe d V a lue :
$12.293 per unit, which represents a return of 22.93% over the principal amount.
Ca lc ula t ion Da y:
February 19, 2021
Pric e M ult iplie r:
1, for each Basket Stock, subject to adjustment for certain corporate events
relating to the Basket Stocks described beginning on page PS-19 of product
supplement STOCK ARN-1.
Fe e s a nd
The underwriting discount of $0.20 per unit listed on the cover page and the
Cha rge s:
hedging related charge of $0.075 per unit described in "Structuring the Notes" on
page TS-14.
Ca lc ula t ion
BofA Securities, Inc. ("BofAS")
Age nt :
Accelerated Return NotesŪ
TS-2
Accelerated Return NotesŪ
Linked to a Basket of Three Financial Sector Stocks, due February 26, 2021
The terms and risks of the notes are contained in this term sheet and in the following:
?
Product supplement STOCK ARN-1 dated November 30, 2018:
https://www.sec.gov/Archives/edgar/data/1000275/000114036118044219/form424b5.htm
?
Series H MTN prospectus supplement dated September 7, 2018:
https://www.sec.gov/Archives/edgar/data/1000275/000121465918005975/f97180424b3.htm
?
Prospectus dated September 7, 2018:
https://www.sec.gov/Archives/edgar/data/1000275/000121465918005973/l96181424b3.htm
As a result of the completion of the reorganization of Bank of America's U.S. broker-dealer business, references to Merrill Lynch, Pierce, Fenner & Smith Incorporated ("MLPF&S") in the accompanying product
supplement STOCK ARN-1, as such references relate to MLPF&S's institutional services, should be read as references to BofAS.
These documents (together, the "Note Prospectus") have been filed as part of a registration statement with the SEC, which may, without cost, be accessed on the SEC website as indicated above or obtained from
MLPF&S or BofAS by calling 1-800-294-1322. Before you invest, you should read the Note Prospectus, including this term sheet, for information about us and this offering. Any prior or contemporaneous oral
statements and any other written materials you may have received are superseded by the Note Prospectus. Capitalized terms used but not defined in this term sheet have the meanings set forth in product
supplement STOCK ARN-1. Unless otherwise indicated or unless the context requires otherwise, all references in this document to "we," "us," "our," or similar references are to RBC.
Investor Considerations
Y ou m a y w ish t o c onside r a n inve st m e nt in t he not e s if:

T he not e s m a y not be a n a ppropria t e inve st m e nt for you if:

We urge
?
You anticipate that the value of the Basket will increase moderately from the Starting Value to the
?
You believe that the value of the Basket will decrease from the Starting Value to the Ending
you to
Ending Value.
Value or that it will not increase sufficiently over the term of the notes to provide you with your
consult
desired return.
?
You are willing to risk a loss of principal and return if the value of the Basket decreases from the your
Starting Value to the Ending Value.
?
You seek principal repayment or preservation of capital.
?
You accept that the return on the notes will be capped.
?
You seek an uncapped return on your investment.
?
You are willing to forgo the interest payments that are paid on traditional interest bearing debt
?
You seek interest payments or other current income on your investment.
securities.
?
You want to receive dividends or other distributions paid on the Basket Stocks.
?
You are willing to forgo dividends or other benefits of owning the Basket Stocks.
?
You seek an investment for which there will be a liquid secondary market.
?
You are willing to accept a limited or no market for sales prior to maturity, and understand that
?
You are unwilling or are unable to take market risk on the notes or to take our credit risk as
the market prices for the notes, if any, will be affected by various factors, including our actual and
issuer of the notes.
perceived creditworthiness, our internal funding rate and fees and charges on the notes.
investment, legal, tax, accounting, and other advisors before you invest in the notes.
?
You are willing to assume our credit risk, as issuer of the notes, for all payments under the notes,
including the Redemption Amount.
Accelerated Return NotesŪ
TS-3
Accelerated Return NotesŪ
Linked to a Basket of Three Financial Sector Stocks, due February 26, 2021
Hypothetical Payout Profile

Ac c e le ra t e d Re t urn N ot e sŪ
This graph reflects the returns on the notes, based on the Participation Rate of 300% and the Capped
Value of $12.293 per unit. The green line reflects the returns on the notes, while the dotted gray line
reflects the returns of a direct investment in the Basket Stocks, excluding dividends.
This graph has been prepared for purposes of illustration only.
https://www.sec.gov/Archives/edgar/data/1000275/000114036119023093/form424b2.htm[12/23/2019 3:57:22 PM]


Hypothetical Payments at Maturity
The following table and examples are for purposes of illustration only. They are based on hypot he t ic a l
values and show hypot he t ic a l returns on the notes. They illustrate the calculation of the Redemption
Amount and total rate of return based on the Starting Value of 100.00, the Participation Rate of 300%, the
Capped Value of $12.293 per unit and a range of hypothetical Ending Values. T he a c t ua l a m ount you
re c e ive a nd t he re sult ing t ot a l ra t e of re t urn w ill de pe nd on t he a c t ua l Ending V a lue a nd
w he t he r you hold t he not e s t o m a t urit y. The following examples do not take into account any tax
consequences from investing in the notes.
For recent hypot he t ic a l historical values of the Basket, see "The Basket" section below. For recent actual
prices of the Basket Stocks, see "The Basket Stocks" section below. The Ending Value will not include any
income generated by dividends paid on the Basket Stocks, which you would otherwise be entitled to receive if
you invested in those stocks directly. In addition, all payments on the notes are subject to issuer credit risk.

Pe rc e nt a ge Cha nge from


t he St a rt ing V a lue t o t he Ending
Re de m pt ion Am ount pe r
T ot a l Ra t e of Re t urn on t he
Ending V a lue
V a lue
U nit
N ot e s
0.00

-100.00%

$0.00

-100.00%
50.00

-50.00%

$5.00

-50.00%
80.00

-20.00%

$8.00

-20.00%
90.00

-10.00%

$9.00

-10.00%
94.00

-6.00%

$9.40

-6.00%
97.00

-3.00%

$9.70

-3.00%
100.00(1)

0.00%

$10.00

0.00%
102.00

2.00%

$10.60

6.00%
103.00

3.00%

$10.90

9.00%
105.00

5.00%

$11.50

15.00%
110.00

10.00%

$12.293(2)

22.93%
120.00

20.00%

$12.293

22.93%
130.00

30.00%

$12.293

22.93%
140.00

40.00%

$12.293

22.93%
150.00

50.00%

$12.293

22.93%
160.00

60.00%

$12.293

22.93%
(1)
The Starting Value was set to 100.00 on the pricing date.
(2)
The Redemption Amount per unit cannot exceed the Capped Value.
Accelerated Return NotesŪ
TS-4
Accelerated Return NotesŪ
Linked to a Basket of Three Financial Sector Stocks, due February 26, 2021
Re de m pt ion Am ount Ca lc ula t ion Ex a m ple s
Ex a m ple 1
The Ending Value is 80.00, or 80.00% of the Starting Value:
Starting Value:
100.00
Ending Value:
80.00
= $ 8 .0 0 Redemption Amount per unit
Ex a m ple 2
The Ending Value is 103.00, or 103.00% of the Starting Value:
Starting Value:
100.00
Ending Value:
103.00
= $ 1 0 .9 0 Redemption Amount per unit
Ex a m ple 3
The Ending Value is 130.00, or 130.00% of the Starting Value:
Starting Value:
100.00
Ending Value:
130.00
= $ 1 9 .0 0 , how e ve r, be c a use t he Re de m pt ion Am ount for t he not e s c a nnot e x c e e d t he Ca ppe d V a lue , t he Re de m pt ion
Am ount w ill be $ 1 2 .2 9 3 pe r unit
Accelerated Return NotesŪ
TS-5
Accelerated Return NotesŪ
Linked to a Basket of Three Financial Sector Stocks, due February 26, 2021
https://www.sec.gov/Archives/edgar/data/1000275/000114036119023093/form424b2.htm[12/23/2019 3:57:22 PM]


Risk Factors
There are important differences between the notes and a conventional debt security. An investment in the notes involves significant risks, including those listed below. You should carefully review the more detailed
explanation of risks relating to the notes in the "Risk Factors" sections beginning on page PS-6 of product supplement STOCK ARN-1, page S-1 of the MTN prospectus supplement, and page 1 of the prospectus
identified above. We also urge you to consult your investment, legal, tax, accounting, and other advisors before you invest in the notes.
?
Depending on the performance of the Basket as measured shortly before the maturity date, your investment may result in a loss; there is no guaranteed return of principal.
?
Your return on the notes may be less than the yield you could earn by owning a conventional fixed or floating rate debt security of comparable maturity.
?
Your investment return is limited to the return represented by the Capped Value and may be less than a comparable investment directly in the Basket Stocks.
?
Payments on the notes are subject to our credit risk, and actual or perceived changes in our creditworthiness are expected to affect the value of the notes. If we become insolvent or are unable to pay our
obligations, you may lose your entire investment.
?
The initial estimated value of the notes is an estimate only, determined as of a particular point in time by reference to our and our affiliates' pricing models. These pricing models consider certain
assumptions and variables, including our credit spreads, our internal funding rate on the pricing date, mid-market terms on hedging transactions, expectations on interest rates and volatility, price-
sensitivity analysis, and the expected term of the notes. These pricing models rely in part on certain forecasts about future events, which may prove to be incorrect.
?
The public offering price you pay for the notes exceeds the initial estimated value. If you attempt to sell the notes prior to maturity, their market value may be lower than the price you paid for them and
lower than the initial estimated value. This is due to, among other things, changes in the value of the Basket, our internal funding rate, and the inclusion in the public offering price of the underwriting
discount and the hedging related charge, all as further described in "Structuring the Notes" on page TS-14. These factors, together with various credit, market and economic factors over the term of the
notes, are expected to reduce the price at which you may be able to sell the notes in any secondary market and will affect the value of the notes in complex and unpredictable ways.
?
The initial estimated value does not represent a minimum or maximum price at which we, MLPF&S, BofAS, or any of our affiliates would be willing to purchase your notes in any secondary market (if any
exists) at any time. The value of your notes at any time after issuance will vary based on many factors that cannot be predicted with accuracy, including the performance of the Basket, our
creditworthiness and changes in market conditions.
?
A trading market is not expected to develop for the notes. None of us, MLPF&S or BofAS is obligated to make a market for, or to repurchase, the notes. There is no assurance that any party will be willing
to purchase your notes at any price in any secondary market.
?
Our business, hedging and trading activities, and those of MLPF&S, BofAS and our respective affiliates (including trades in shares of the Basket Stocks), and any hedging and trading activities we,
MLPF&S, BofAS or our respective affiliates engage in for our clients' accounts, may affect the market value and return of the notes and may create conflicts of interest with you.
?
The Underlying Companies will have no obligations relating to the notes, and none of us, MLPF&S or BofAS will perform any due diligence procedures with respect to any Underlying Company in
connection with this offering.
?
Changes in the price of one of the Basket Stocks may be offset by changes in the prices of the other Basket Stocks.
?
You will have no rights of a holder of the Basket Stocks, and you will not be entitled to receive shares of the Basket Stocks or dividends or other distributions by the Underlying Companies.
?
While we, MLPF&S, BofAS or our respective affiliates may from time to time own securities of the Underlying Companies, we, MLPF&S, BofAS and our respective affiliates do not control any Underlying
Company, and have not verified any disclosures made by any Underlying Company.
?
The Redemption Amount will not be adjusted for all corporate events that could affect a Basket Stock. See "Description of ARNs--Anti-Dilution Adjustments" beginning on page PS-19 of product
supplement STOCK ARN-1.
?
There may be potential conflicts of interest involving the calculation agent, which is BofAS. We have the right to appoint and remove the calculation agent.
?
The U.S. federal income tax consequences of the notes are uncertain, and may be adverse to a holder of the notes. See "Summary of U.S. Federal Income Tax Consequences" below and "U.S. Federal
Income Tax Summary" beginning on page PS-35 of product supplement STOCK ARN-1. For a discussion of the Canadian federal income tax consequences of investing in the notes, see "Tax
Consequences--Canadian Taxation" in the prospectus dated September 7, 2018.
Accelerated Return NotesŪ
TS-6
Accelerated Return NotesŪ
Linked to a Basket of Three Financial Sector Stocks, due February 26, 2021
Additional Risk Factors
T he st oc k s inc lude d in t he Ba sk e t a re c onc e nt ra t e d in one se c t or. All of the stocks included in the Basket are issued by companies in the financial sector. Although an investment in the notes will
not give holders any ownership or other direct interests in the Basket Stocks, the return on an investment in the notes will be subject to certain risks associated with a direct equity investment in companies in the
financial services sector. Accordingly, by investing in the notes, you will not benefit from the diversification which could result from an investment linked to companies that operate in multiple sectors.
Adve rse c ondit ions in t he fina nc ia l se c t or m a y re duc e your re t urn on t he not e s. All of the Basket Stocks are issued by companies whose primary lines of business are directly associated with
the financial services sector. The profitability of these companies is largely dependent on the availability and cost of capital funds, and can fluctuate significantly, particularly when market interest rates change.
Credit losses resulting from financial difficulties of these companies' customers can negatively impact the sector. In addition, adverse economic, business, or political developments affecting the U.S., including with
respect to the insurance sector, or to real estate and loans secured by real estate, could have a major effect on the value of the Basket Stocks. As a result of these factors, the value of the notes may be subject to
greater volatility and be more adversely affected by economic, political, or regulatory events relating to the financial services sector.
Ec onom ic c ondit ions ha ve a dve rse ly im pa c t e d t he st oc k pric e s of m a ny c om pa nie s in t he fina nc ia l se rvic e s se c t or, a nd m a y do so during t he t e rm of t he not e s. In recent
years, economic conditions in the U.S. have resulted, and may continue to result, in significant losses among many companies that operate in the financial services sector. These conditions have also resulted,
and may continue to result, in a high degree of volatility in the stock prices of financial institutions, and substantial fluctuations in the profitability of these companies. Numerous financial services companies have
experienced substantial decreases in the value of their assets, taken action to raise capital (including the issuance of debt or equity securities), or even ceased operations. Further, companies in the financial
services sector have been subject to unprecedented government actions and regulation, which may limit the scope of their operations and, in turn, result in a decrease in value of these companies. Any of these
factors may have an adverse impact on the performance of the Basket Stocks. As a result, the value of the Basket Stocks may be adversely affected by economic, political, or regulatory events affecting the
financial services sector or one of the sub-sectors of the financial services sector. This in turn could adversely impact the market value of the notes and decrease the Redemption Amount.
Accelerated Return NotesŪ
TS-7
Accelerated Return NotesŪ
Linked to a Basket of Three Financial Sector Stocks, due February 26, 2021
The Basket
The Basket is designed to allow investors to participate in the percentage changes of the Basket from the Starting Value to the Ending Value. The Basket Stocks are described in the section "The Basket Stocks"
below. Each Basket Stock was assigned an initial weight on the pricing date, as set forth in the table below.
For more information on the calculation of the value of the Basket, please see the section entitled "Description of ARNs--Basket Market Measures" beginning on page PS-25 of product supplement STOCK ARN-
1.
https://www.sec.gov/Archives/edgar/data/1000275/000114036119023093/form424b2.htm[12/23/2019 3:57:22 PM]


On the pricing date, for each Basket Stock, the Initial Component Weight, the Closing Market Price, the Component Ratio and the initial contribution to the Basket value were as follows:
I nit ia l
Closing
I nit ia l Ba sk e t
Bloom be rg
Com pone nt
M a rk e t
Com pone nt
V a lue
Ba sk e t St oc k
Sym bol
We ight
Pric e (1)
Ra t io(2)
Cont ribut ion
Citigroup Inc.
C
33.33%
78.20
0.42621483
33.33
JPMorgan Chase & Co.
JPM
33.33%
137.35
0.24266473
33.33
Morgan Stanley
MS
33.34%
50.86
0.65552497
33.34




St a rt ing V a lue
100.00
(1) These were the Closing Market Prices of the Basket Stocks on the pricing date.
(2) Each Component Ratio equals the Initial Component Weight of the relevant Basket Stock (as a percentage) multiplied by 100, and then divided by the Closing Market Price of that Basket Stock on the
pricing date and rounded to eight decimal places.
The calculation agent will calculate the Ending Value of the Basket by summing the products of the Closing Market Price for each Basket Stock (multiplied by its Price Multiplier) on the calculation day and the
Component Ratio applicable to that Basket Stock. The Price Multiplier for each Basket Stock will initially be 1, and is subject to adjustment as described in product supplement STOCK ARN-1. If a Market
Disruption Event occurs as to any Basket Stock on the scheduled calculation day, the Closing Market Price of that Basket Stock will be determined as more fully described in the section entitled "Description of
ARNs--Basket Market Measures--Ending Value of the Basket" beginning on page PS-26 of product supplement STOCK ARN-1.
Accelerated Return NotesŪ
TS-8
Accelerated Return NotesŪ
Linked to a Basket of Three Financial Sector Stocks, due February 26, 2021
While a c t ua l hist oric a l inform a t ion on t he Ba sk e t did not e x ist be fore t he pric ing da t e , t he follow ing gra ph se t s fort h t he hypot he t ic a l hist oric a l da ily pe rform a nc e of t he
Ba sk e t from J a nua ry 1 , 2 0 0 9 t hrough t he pric ing da t e . T he gra ph is ba se d upon a c t ua l da ily hist oric a l pric e s of t he Ba sk e t St oc k s, hypot he t ic a l Com pone nt Ra t ios ba se d
on t he c losing pric e s of t he Ba sk e t St oc k s a s of De c e m be r 3 1 , 2 0 0 8 , a nd a Ba sk e t va lue of 1 0 0 .0 0 a s of t ha t da t e . T his hypot he t ic a l hist oric a l da t a on t he Ba sk e t is not
ne c e ssa rily indic a t ive of t he fut ure pe rform a nc e of t he Ba sk e t or w ha t t he va lue of t he not e s m a y be . Any hypot he t ic a l hist oric a l upw a rd or dow nw a rd t re nd in t he va lue
of t he Ba sk e t during a ny pe riod se t fort h be low is not a n indic a t ion t ha t t he va lue of t he Ba sk e t is m ore or le ss lik e ly t o inc re a se or de c re a se a t a ny t im e ove r t he t e rm of
t he not e s.
H ypot he t ic a l H ist oric a l Pe rform a nc e of t he Ba sk e t
Accelerated Return NotesŪ
TS-9
Accelerated Return NotesŪ
Linked to a Basket of Three Financial Sector Stocks, due February 26, 2021
The Basket Stocks
We have derived the following information from publicly available documents. We have not independently verified the accuracy or completeness of the following information.
Because each Basket Stock is registered under the Securities Exchange Act of 1934, the Underlying Companies are required to file periodically certain financial and other information specified by the SEC.
Information provided to or filed with the SEC by the Underlying Companies can be located at the Public Reference Section of the SEC, 100 F Street, N.E., Room 1580, Washington, D.C. 20549 or through the
SEC's website at http://www.sec.gov by reference to the applicable CIK number set forth below.
This term sheet relates only to the notes and does not relate to any securities of the Underlying Companies. None of us, MLPF&S, BofAS or any of our respective affiliates has participated or will participate in the
preparation of the Underlying Companies' publicly available documents. None of us, MLPF&S, BofAS or any of our respective affiliates has made any due diligence inquiry with respect to the Underlying
Companies in connection with the offering of the notes. None of us, MLPF&S, BofAS or any of our respective affiliates makes any representation that the publicly available documents or any other publicly
available information regarding the Underlying Companies are accurate or complete. Furthermore, there can be no assurance that all events occurring prior to the date of this term sheet, including events that
would affect the accuracy or completeness of these publicly available documents that would affect the trading price of the Basket Stocks, have been or will be publicly disclosed. Subsequent disclosure of any
events or the disclosure of or failure to disclose material future events concerning an Underlying Company could affect the price of its Basket Stock and therefore could affect your return on the notes. The
selection of the Basket Stocks is not a recommendation to buy or sell shares of the Basket Stocks.
The tables set forth below show the quarterly high and low Closing Market Prices of the shares of the Basket Stocks on their primary exchange from the first quarter of 2009 through the pricing date. We obtained
this historical data from Bloomberg L.P. We have not independently verified the accuracy or completeness of the information obtained from Bloomberg L.P. These historical trading prices may have been adjusted
to reflect certain corporate actions such as stock splits and reverse stock splits.
The historical data below on each of the Basket Stocks is not necessarily indicative of the future performance of the particular Basket Stock or what the value of the notes may be. Any historical upward or
downward trend in the price per share of any Basket Stock during any period set forth below is not an indication that the price per share of the Basket Stock is more or less likely to increase or decrease at any
time over the term of the notes. Before investing in the notes, you should consult publicly available sources for the prices and trading pattern of each of the Basket Stocks.
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Accelerated Return NotesŪ
TS-10
Accelerated Return NotesŪ
Linked to a Basket of Three Financial Sector Stocks, due February 26, 2021
Cit igroup I nc .
Citigroup Inc. is a financial services holding company that provides a range of financial services to consumer and corporate customers. The company's services include investment banking, retail brokerage,
corporate banking, and cash management products and services. This Basket Stock trades on the NYSE under the symbol "C". The company's CIK number is 831001.

H igh ($ )
Low ($ )
2009


First Quarter
74.60
10.20
Second Quarter
40.20
26.80
Third Quarter
52.30
25.90
Fourth Quarter
50.00
32.00
2010


First Quarter
43.10
31.50
Second Quarter
49.70
36.30
Third Quarter
43.00
36.60
Fourth Quarter
48.10
39.50
2011


First Quarter
51.30
43.90
Second Quarter
46.00
36.81
Third Quarter
42.88
23.96
Fourth Quarter
34.17
23.11
2012


First Quarter
38.08
28.17
Second Quarter
36.87
24.82
Third Quarter
34.79
25.24
Fourth Quarter
40.17
32.75
2013


First Quarter
47.60
41.15
Second Quarter
53.27
42.50
Third Quarter
53.00
47.67
Fourth Quarter
53.29
47.67
2014


First Quarter
55.20
46.34
Second Quarter
49.58
45.68
Third Quarter
53.66
46.90
Fourth Quarter
56.37
49.68
2015


First Quarter
54.26
46.95
Second Quarter
57.39
51.52
Third Quarter
60.34
49.00
Fourth Quarter
55.87
49.88
2016


First Quarter
51.13
34.98
Second Quarter
47.33
38.48
Third Quarter
47.90
40.78
Fourth Quarter
61.09
47.03
2017


First Quarter
61.55
55.68
Second Quarter
66.98
57.72
Third Quarter
72.74
65.95
Fourth Quarter
77.10
71.33
2018


First Quarter
80.08
67.50
Second Quarter
72.86
65.46
Third Quarter
74.79
66.06
Fourth Quarter
72.62
49.26
2019


First Quarter
65.93
52.56
Second Quarter
71.03
62.15
Third Quarter
73.01
61.32
Fourth Quarter (through the pricing date)
78.20
66.26
Accelerated Return NotesŪ
TS-11
Accelerated Return NotesŪ
Linked to a Basket of Three Financial Sector Stocks, due February 26, 2021
J PM orga n Cha se & Co.
JPMorgan Chase & Co. provides financial services and retail banking. The company provides services such as investment banking, treasury and securities services, asset management, private banking, card
member services, commercial banking, and home finance. The company serves business enterprises, institutions, and individuals. This Basket Stock trades on the NYSE under the symbol "JPM". The company's
CIK number is 19617.

H igh ($ )
Low ($ )
2009


First Quarter
31.35
15.90
Second Quarter
38.94
27.25
Third Quarter
46.47
32.27
Fourth Quarter
47.16
40.27
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2010


First Quarter
45.02
37.70
Second Quarter
47.81
36.61
Third Quarter
41.64
35.63
Fourth Quarter
42.67
36.96
2011


First Quarter
48.00
43.40
Second Quarter
47.64
39.49
Third Quarter
42.29
29.27
Fourth Quarter
37.02
28.38
2012


First Quarter
46.27
34.91
Second Quarter
46.13
31.00
Third Quarter
41.57
33.90
Fourth Quarter
44.53
39.29
2013


First Quarter
51.00
44.57
Second Quarter
55.62
46.64
Third Quarter
56.67
50.32
Fourth Quarter
58.48
50.75
2014


First Quarter
61.07
54.31
Second Quarter
60.67
53.31
Third Quarter
61.63
55.56
Fourth Quarter
63.15
55.08
2015


First Quarter
62.49
54.38
Second Quarter
69.75
59.95
Third Quarter
70.08
59.84
Fourth Quarter
68.46
59.99
2016


First Quarter
63.73
53.07
Second Quarter
65.81
57.32
Third Quarter
67.50
59.55
Fourth Quarter
87.13
66.51
2017


First Quarter
93.60
83.30
Second Quarter
91.40
82.15
Third Quarter
95.51
88.42
Fourth Quarter
107.83
95.86
2018


First Quarter
118.77
107.01
Second Quarter
114.29
103.24
Third Quarter
118.63
103.61
Fourth Quarter
115.32
92.14
2019


First Quarter
107.19
97.11
Second Quarter
116.12
104.64
Third Quarter
120.23
104.80
Fourth Quarter (through the pricing date)
138.18
111.82
Accelerated Return NotesŪ
TS-12
Accelerated Return NotesŪ
Linked to a Basket of Three Financial Sector Stocks, due February 26, 2021
M orga n St a nle y
Morgan Stanley, a bank holding company, provides financial services. The company operates a securities business which serves individual and institutional investors and investment banking clients. The company
also operates an asset management business. This Basket Stock trades on the NYSE under the symbol "MS". The company's CIK number is 895421.

H igh ($ )
Low ($ )
2009


First Quarter
25.91
13.10
Second Quarter
31.39
21.08
Third Quarter
32.98
25.50
Fourth Quarter
35.74
29.12
2010


First Quarter
32.92
26.60
Second Quarter
31.94
23.21
Third Quarter
27.87
22.83
Fourth Quarter
27.66
24.19
2011


First Quarter
30.99
27.11
Second Quarter
27.76
21.93
Third Quarter
24.20
13.06
Fourth Quarter
19.41
12.47
2012


First Quarter
21.17
15.90
Second Quarter
19.81
12.36
Third Quarter
18.24
12.62
Fourth Quarter
19.27
16.09
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2013


First Quarter
24.32
19.58
Second Quarter
27.15
20.31
Third Quarter
29.02
24.04
Fourth Quarter
31.62
26.55
2014


First Quarter
33.40
28.95
Second Quarter
32.66
28.47
Third Quarter
36.13
31.36
Fourth Quarter
39.00
32.53
2015


First Quarter
38.71
33.77
Second Quarter
40.21
35.91
Third Quarter
40.54
31.01
Fourth Quarter
35.41
31.29
2016


First Quarter
31.48
21.69
Second Quarter
27.78
23.61
Third Quarter
32.24
25.00
Fourth Quarter
43.73
31.73
2017


First Quarter
46.83
41.58
Second Quarter
45.72
40.69
Third Quarter
48.31
44.01
Fourth Quarter
53.85
48.10
2018


First Quarter
58.91
51.79
Second Quarter
55.22
47.19
Third Quarter
51.05
46.57
Fourth Quarter
47.27
37.01
2019


First Quarter
44.49
39.68
Second Quarter
48.46
40.69
Third Quarter
45.74
39.10
Fourth Quarter (through the pricing date)
50.90
39.82
Accelerated Return NotesŪ
TS-13
Accelerated Return NotesŪ
Linked to a Basket of Three Financial Sector Stocks, due February 26, 2021
Supplement to the Plan of Distribution
Under our distribution agreement with BofAS, BofAS will purchase the notes from us as principal at the public offering price indicated on the cover of this term sheet, less the indicated underwriting discount.
MLPF&S will purchase the notes from BofAS for resale, and will receive a selling concession in connection with the sale of the notes in an amount up to the full amount of underwriting discount set forth on the
cover of this term sheet.
We will deliver the notes against payment therefor in New York, New York on a date that is greater than two business days following the pricing date. Under Rule 15c6-1 of the Securities Exchange Act of 1934,
trades in the secondary market generally are required to settle in two business days, unless the parties to any such trade expressly agree otherwise. Accordingly, purchasers who wish to trade the notes more than
two business days prior to the original issue date will be required to specify alternative settlement arrangements to prevent a failed settlement.
The notes will not be listed on any securities exchange. In the original offering of the notes, the notes will be sold in minimum investment amounts of 100 units. If you place an order to purchase the notes, you are
consenting to MLPF&S and/or one of its affiliates acting as a principal in effecting the transaction for your account.
MLPF&S and BofAS may repurchase and resell the notes, with repurchases and resales being made at prices related to then-prevailing market prices or at negotiated prices, and these prices will include
MLPF&S's and BofAS's trading commissions and mark-ups or mark-downs. MLPF&S and BofAS may act as principal or agent in these market-making transactions; however, neither is obligated to engage in any
such transactions. At their discretion, for a short, undetermined initial period after the issuance of the notes, MLPF&S and BofAS may offer to buy the notes in the secondary market at a price that may exceed the
initial estimated value of the notes. Any price offered by MLPF&S or BofAS for the notes will be based on then-prevailing market conditions and other considerations, including the performance of the Basket and
the remaining term of the notes. However, none of us, MLPF&S, BofAS or any of our respective affiliates is obligated to purchase your notes at any price or at any time, and we cannot assure you that we,
MLPF&S, BofAS or any of our respective affiliates will purchase your notes at a price that equals or exceeds the initial estimated value of the notes.
The value of the notes shown on your account statement will be based on BofAS's estimate of the value of the notes if BofAS or another of its affiliates were to make a market in the notes, which it is not obligated
to do. That estimate will be based upon the price that BofAS may pay for the notes in light of then-prevailing market conditions and other considerations, as mentioned above, and will include transaction costs. At
certain times, this price may be higher than or lower than the initial estimated value of the notes.
The distribution of the Note Prospectus in connection with these offers or sales will be solely for the purpose of providing investors with the description of the terms of the notes that was made available to
investors in connection with their initial offering. Secondary market investors should not, and will not be authorized to, rely on the Note Prospectus for information regarding RBC or for any purpose other than that
described in the immediately preceding sentence.
Accelerated Return NotesŪ
TS-14
Accelerated Return NotesŪ
Linked to a Basket of Three Financial Sector Stocks, due February 26, 2021
Structuring the Notes
The notes are our debt securities, the return on which is linked to the performance of the Basket. As is the case for all of our debt securities, including our market-linked notes, the economic terms of the notes
reflect our actual or perceived creditworthiness at the time of pricing. In addition, because market-linked notes result in increased operational, funding and liability management costs to us, we typically borrow the
funds under these notes at a rate that is more favorable to us than the rate which we refer to as our internal funding rate, which is the rate that we might pay for a conventional fixed or floating rate debt security.
This generally relatively lower internal funding rate, which is reflected in the economic terms of the notes, along with the fees and charges associated with market-linked notes, resulted in the initial estimated value
of the notes on the pricing date being less than their public offering price.
Payments on the notes, including the Redemption Amount, will be calculated based on the $10 principal amount per unit. The Redemption Amount will depend on the performance of the Basket. In order to meet
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these payment obligations, at the time we issue the notes, we may choose to enter into certain hedging arrangements (which may include call options, put options or other derivatives) with BofAS or one of its
affiliates. The terms of these hedging arrangements are determined by seeking bids from market participants, including MLPF&S, BofAS and their affiliates, and take into account a number of factors, including our
creditworthiness, interest rate movements, the volatility of the Basket Stocks, the tenor of the notes and the tenor of the hedging arrangements. The economic terms of the notes and their initial estimated value
depend in part on the terms of these hedging arrangements.
BofAS has advised us that the hedging arrangements will include a hedging related charge of approximately $0.075 per unit, reflecting an estimated profit to be credited to BofAS from these transactions. Since
hedging entails risk and may be influenced by unpredictable market forces, additional profits and losses from these hedging arrangements may be realized by BofAS or any third party hedge providers.
For further information, see "Risk Factors--General Risks Relating to the ARNs" beginning on page PS-6 and "Use of Proceeds and Hedging" on page PS-15 of product supplement STOCK ARN-1.
Accelerated Return NotesŪ
TS-15
Accelerated Return NotesŪ
Linked to a Basket of Three Financial Sector Stocks, due February 26, 2021
Summary of Canadian Federal Income Tax Consequences
For a discussion of the material Canadian federal income tax consequences relating to an investment in the notes, please see the section entitled "Tax Consequences--Canadian Taxation" in the prospectus dated
September 7, 2018.
Summary of U.S. Federal Income Tax Consequences
You should consider the U.S. federal income tax consequences of an investment in the notes, including the following:
?
There is no statutory, judicial, or administrative authority directly addressing the characterization of the notes.
?
You agree with us (in the absence of a statutory, regulatory, administrative, or judicial ruling to the contrary) to characterize and treat the notes for all tax purposes as pre-paid cash-settled derivative
contracts in respect of the Basket.
?
Under this characterization and tax treatment of the notes, a U.S. holder (as defined on page 41 of the prospectus) generally will recognize capital gain or loss upon the sale or maturity of the notes. This
capital gain or loss generally will be long-term capital gain or loss if you held the notes for more than one year.
?
No assurance can be given that the Internal Revenue Service or any court will agree with this characterization and tax treatment.
?
Under current Internal Revenue Service guidance, withholding on "dividend equivalent" payments (as discussed in the accompanying product supplement), if any, will not apply to notes that are issued as
of the date of this pricing supplement unless such notes are "delta-one" instruments. The discussion in the accompanying product supplement is modified to reflect recent Internal Revenue Service
guidance, which states that the U.S. Treasury Department and the Internal Revenue Service intend to amend the effective dates of the U.S. Treasury Department regulations to provide that withholding on
dividend equivalent payments will not apply to specified equity-linked instruments that are not delta-one instruments and that are issued before January 1, 2023.
?
The accompanying product supplement notes that FATCA withholding on payments of gross proceeds from a sale or redemption of the notes will only apply to payments made after December 31, 2018.
That discussion is modified to reflect regulations proposed by the U.S. Treasury Department in December 2018 indicating an intent to eliminate the requirement under FATCA of withholding on gross
proceeds of the disposition of financial instruments. The U.S. Treasury Department has indicated that taxpayers may rely on these proposed regulations pending their finalization. Prospective investors
are urged to consult with their own tax advisors regarding the possible implications of FATCA on their investment in the notes.
Y ou should c onsult your ow n t a x a dvisor c onc e rning t he U .S. fe de ra l inc om e t a x c onse que nc e s t o you of a c quiring, ow ning, a nd disposing of t he not e s, a s w e ll a s a ny t a x
c onse que nc e s a rising unde r t he la w s of a ny st a t e , loc a l, fore ign, or ot he r t a x jurisdic t ion a nd t he possible e ffe c t s of c ha nge s in U .S. fe de ra l or ot he r t a x la w s. Y ou should
re vie w c a re fully t he disc ussion unde r t he se c t ion e nt it le d "U .S. Fe de ra l I nc om e T a x Sum m a ry" be ginning on pa ge PS -3 5 of produc t supple m e nt ST OCK ARN -1 .
Validity of the Notes
In the opinion of Norton Rose Fulbright Canada LLP, the issue and sale of the notes has been duly authorized by all necessary corporate action of RBC in conformity with the Indenture, and when the notes have
been duly executed, authenticated and issued in accordance with the Indenture and delivered against payment therefor, the notes will be validly issued and, to the extent validity of the notes is a matter governed
by the laws of the Province of Ontario or Québec, or the laws of Canada applicable therein, and will be valid obligations of RBC, subject to equitable remedies which may only be granted at the discretion of a court
of competent authority, subject to applicable bankruptcy, to rights to indemnity and contribution under the notes or the Indenture which may be limited by applicable law, to insolvency and other laws of general
application affecting creditors' rights, to limitations under applicable limitations statutes and subject to limitations as to the currency in which judgments in Canada may be rendered, as prescribed by the Currency
Act (Canada). This opinion is given as of the date hereof and is limited to the laws of the Provinces of Ontario and Québec and the federal laws of Canada applicable thereto. In addition, this opinion is subject to
customary assumptions about the Trustee's authorization, execution and delivery of the Indenture and the genuineness of signatures and certain factual matters, all as stated in the letter of such counsel dated
September 7, 2018, which has been filed as Exhibit 5.1 to RBC's Form 6-K filed with the SEC dated September 7, 2018.
In the opinion of Morrison & Foerster LLP, when the notes have been duly completed in accordance with the Indenture and issued and sold as contemplated by the prospectus supplement and the prospectus, the
notes will be valid, binding and enforceable obligations of RBC, entitled to the benefits of the Indenture, subject to applicable bankruptcy, insolvency and similar laws affecting creditors' rights generally, concepts
of reasonableness and equitable principles of general applicability (including, without limitation, concepts of good faith, fair dealing and the lack of bad faith). This opinion is given as of the date hereof and is
limited to the laws of the State of New York. This opinion is subject to customary assumptions about the Trustee's authorization, execution and delivery of the Indenture and the genuineness of signatures and to
such counsel's reliance on RBC and other sources as to certain factual matters, all as stated in the legal opinion dated September 7, 2018, which has been filed as Exhibit 5.2 to RBC's Form 6-K dated September
7, 2018.
Accelerated Return NotesŪ
TS-16
Accelerated Return NotesŪ
Linked to a Basket of Three Financial Sector Stocks, due February 26, 2021
Terms Incorporated in Master Global Security
The terms appearing under the captions "Summary--Terms of the Notes" and "Summary--Redemption Amount Determination" on page TS-2 above, the pricing date, settlement date and maturity date appearing
on the cover page, and the applicable terms included in the documents listed under "Summary" on page TS-2 are incorporated into the master global security that represents the notes and is held by The
Depository Trust Company.
Where You Can Find More Information
We have filed a registration statement (including a product supplement, a prospectus supplement, and a prospectus) with the SEC for the offering to which this term sheet relates. Before you invest, you should
read the Note Prospectus, including this term sheet, and the other documents that we have filed with the SEC, for more complete information about us and this offering. You may get these documents without cost
by visiting EDGAR on the SEC website at www.sec.gov. Alternatively, we, any agent, or any dealer participating in this offering will arrange to send you these documents if you so request by calling MLPF&S or
BofAS toll-free at 1-800-294-1322.
"Accelerated Return NotesŪ" and "ARNsŪ" are the registered service marks of Bank of America Corporation, the parent company of MLPF&S and BofAS.
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Accelerated Return NotesŪ
TS-17
https://www.sec.gov/Archives/edgar/data/1000275/000114036119023093/form424b2.htm[12/23/2019 3:57:22 PM]


Document Outline