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Dynacor Group Inc. Capital/Financing Update 2025
46127_rns_2025-04-22_b9a0e331-cbdd-4dfa-b0ca-6ad01c29ed10.pdf
Capital/Financing Update
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RBC
Capital Markets
This summary is qualified in its entirety by a pricing supplement (the "Pricing Supplement") and the base shelf prospectus dated March 15, 2024
April 17, 2025
RBC GLOBAL INVESTMENT SOLUTIONS
RBC LiONS® Solactive Canada Blue Chip II AR Index Geared Buffered Booster® Participation Securities (CAD), Series 1 Non-Principal Protected Security
| 5.0 year term | 55% Booster | Performance linked to the Solactive Canada Blue Chip II AR Index | Potential return of principal + Booster Amount + return based on index performance | 75% protection buffer level |
|---|---|---|---|---|
| Fundserv | Subscriptions Close | Issue Date | Maturity Date | |
| --- | --- | --- | --- | |
| RBC12790 | May 6, 2025 | May 13, 2025 | May 10, 2030 |
KEY TERMS
Issuer: Royal Bank of Canada
Issuer Credit Ratings: Moody's: Aa1; S&P: AA-; DBRS: AA
Currency: CAD
Minimum Investment: 50 Securities or $5,000.
Term: Approximately 5.0 years
Principal at Risk: The Securities are not principal protected.
Underlying Index: The return on the Securities is linked to the performance of the Solactive Canada Blue Chip II AR Index (the "Underlying Index"). The Underlying Index is an adjusted return index that aims to track the gross total return performance of the Solactive Canada Blue Chip II GTR Index (the "Target Index"), subject to a reduction of a synthetic dividend of 95 index points per annum (the "Adjusted Return Factor"). For the avoidance of doubt, the return on the Securities is linked to the Underlying Index and is not linked to the Target Index. The Closing Level on April 11, 2025 was 1,517.56. For the calculation of the level of the Target Index, any dividends or other distributions paid on the constituent securities of the Target Index are assumed to be reinvested across all of the constituent securities of the Target Index. The Adjusted Return Factor divided by the Closing Level was therefore equal to 6.2600% April 11, 2025. Over the term of the Securities, the sum of the Adjusted Return Factor will be approximately 475 index points, representing 31.3002% of the Closing Level on April 11, 2025.
As of April 11, 2025, the annual dividend yield on the Target Index was 6.309%, representing an aggregate dividend yield of approximately 35.784% compounded annually over the term of the Securities, on the assumption that the dividend yield remains constant.
Issue Date: May 13, 2025.
Initial Index Level: The Closing Level as published by the Index Sponsor on the Initial Valuation Date.
A final base shelf prospectus containing important information relating to the securities described in this document has been filed with the securities regulatory authorities in each of the provinces and territories of Canada. The final base shelf prospectus, any applicable shelf prospectus supplement, the Pricing Supplement and any amendment to such documents are accessible through SEDAR+ at www.sedarplus.com. Copies of the documents may also be obtained from www.rbcnotes.com. This document does not provide full disclosure of all material facts relating to the securities offered. Investors should read the final base shelf prospectus, any applicable shelf prospectus supplement, the Pricing Supplement and any amendment to such documents for disclosure of those facts, especially risk factors relating to the securities offered, before making an investment decision.
www.rbcnotes.com
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Initial Valuation Date: May 7, 2025.
Final Index Level: The Closing Level as published by the Index Sponsor on the Final Valuation Date.
Final Valuation Date: May 7, 2030.
Closing Level: The official closing level of the Underlying Index as announced by the Index Sponsor for the relevant date, as determined by the Calculation Agent.
Maturity Date: May 10, 2030.
Buffer: 25.00%.
The principal of the Securities will be protected against a decline of up to 25.00% in the performance of the Underlying Index, but declines in the performance of the Underlying Index beyond the Buffer will be subject to the Gearing Multiplier.
Gearing Multiplier: 100/75, which is approximately 1.33333, applied only if the Percentage Change in the Underlying Index is negative, declining by more than 25.00%.
Protection Buffer Level: 75.00% of the Initial Index Level.
Payment at Maturity: Payment at maturity will be based on the Percentage Change of the Underlying Index measured from the Initial Index Level to the Final Index Level.
The amount payable (the "Redemption Amount") on each $100.00 Principal Amount per Security at maturity will be determined as follows:
If the Percentage Change in the Underlying Index is greater than or equal to 0.00%, then the Redemption Amount will be:
• $100.00 + ($100.00 × Percentage Change) + ($100.00 × Booster Amount)
If the Percentage Change in the Underlying Index is negative, declining by 25.00% or less (i.e., the Final Index Level is equal to or above the Protection Buffer Level), then the Redemption Amount will be $100.00.
If the Percentage Change in the Underlying Index is negative, declining by more than 25.00% (i.e., the Final Index Level is below the Protection Buffer Level), then the Redemption Amount will be:
• $100.00 + [$100.00 × (Percentage Change + 25.00%) × Gearing Multiplier]
All dollar amounts will be rounded to the nearest whole cent. The minimum payment at maturity is $1.00.
Percentage Change: The amount, expressed as a percentage rounded to three decimal places, equal to:
(Final Index Level - Initial Index Level)
Initial Index Level
Booster Amount: 55.00%.
The Booster Amount will only affect the Redemption Amount if the Percentage Change is greater than or equal to 0.00%.
Secondary Market: Fundserv, RBC12790
Generally, to be effective on a Business Day, a redemption request will need to be initiated by 2:00 p.m. (Toronto time) on that Business Day (or such other time as may be established by Fundserv). Any request received after such time will be deemed to be a request sent and received on the next following Business Day.
Early Trading Charge Schedule:
| If Sold Within the Following No. of Days from the Issue Date | Early Trading Charge (% of Principal Amount) |
|---|---|
| 1 - 60 days | 3.50% |
| 61 - 120 days | 2.25% |
| 121 - 180 days | 1.00% |
| Thereafter | Nil |
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SAMPLE CALCULATIONS
The following examples show how the return on the Securities would be calculated under different scenarios. These examples are included for illustration purposes only. The performance of the Underlying Index used in the examples is not an estimate or forecast of the performance of the Underlying Index or the Securities. The actual performance of the Underlying Index and the Securities will be different from these examples and the differences may be material. All examples assume that a holder of the Securities has purchased Securities with an aggregate Principal Amount of $100.00 and that no Extraordinary Event has occurred. Where applicable, dollar amounts shown below are rounded to the nearest whole cent for ease of reading, but the amount(s) payable to an investor per Security may reflect more decimal places.
Example #1 — Calculation of the Redemption Amount where the Percentage Change is negative, declining by more than 25.00% (i.e., the Final Index Level is below the Protection Buffer Level)
Assuming that the Initial Index Level is 1,517.56 and the Final Index Level is 986.41, the Percentage Change would be calculated as follows:
Percentage Change = (986.41 - 1,517.56) / 1,517.56 = -0.35000 or -35.000%
Since the Percentage Change is negative, declining by more than 25.00% (i.e., the Final Index Level is below the Protection Buffer Level), the Redemption Amount is calculated as follows:
Redemption Amount = $100.00 + [$100.00 × (Percentage Change + 25.00%) × Gearing Multiplier]
Redemption Amount = $100.00 + [$100.00 × (-35.00% + 25.00%) × 1.33333] = $86.67
In this example, the Redemption Amount results in a loss on the Principal Amount equivalent to an annually compounded loss rate of -2.82%.
Example #2 — Calculation of the Redemption Amount where the Percentage Change is negative, declining by 25.00% or less (i.e., the Final Index Level is equal to or above the Protection Buffer Level)
Assuming that the Initial Index Level is 1,517.56 and the Final Index Level is 1,441.68, the Percentage Change would be calculated as follows:
Percentage Change = (1,441.68 - 1,517.56) / 1,517.56 = -0.05000 or -5.000%
Since the Percentage Change is negative, declining by 25.00% or less (i.e., the Final Index Level is equal to or above the Protection Buffer Level), the Redemption Amount is $100.00.
In this example, the Redemption Amount provides a return on the Principal Amount equivalent to an annually compounded rate of return of 0.00%.
Example #3 — Calculation of the Redemption Amount where the Percentage Change is zero or positive
Assuming that the Initial Index Level is 1,517.56 and the Final Index Level is 1,745.19 the Percentage Change would be calculated as follows:
Percentage Change = (1,745.19 - 1,517.56) / 1,517.56 = 0.15000 or 15.00%
Since the Percentage Change is zero or positive, the Redemption Amount is calculated as follows:
Redemption Amount = $100.00 + ($100.00 × 15.000%) + ($100.00 × 55.00%) = $170.00
In this example, the Redemption Amount provides a return on the Principal Amount equivalent to an annually compounded rate of return of 11.20%.
GRAPHICAL DESCRIPTION OF THE REDEMPTION AMOUNT
The graph set out below illustrates the payment at maturity on the Securities in a range of scenarios depending on the performance of the Underlying Index during the term of the Securities. The performance of the Underlying Index used in the graph is not an estimate or forecast of the performance of the Underlying Index or the Securities. This graph shows a limited range of hypothetical returns on the Underlying Index and is intended to be representative of that range only. Returns on the Underlying Index not shown on the graph are possible. The graph is included for illustration purposes only, and in all cases, the return on the Securities will be calculated using the formulas set out in this pricing supplement. There can be no assurance that any specific return on the Securities will be achieved. The graph assumes that a holder of the Securities has purchased Securities with an aggregate Principal Amount of $100.00 and that no Extraordinary Event has occurred. The minimum payment at maturity is $1.00.
The Underlying Index is calculated and published by Solactive AG ("Solactive"), and the name "Solactive" is a registered trademark of Solactive. The Underlying Index has been licensed for use by the Bank in connection with the Securities. The Securities are not sponsored, promoted, sold or supported in any other manner by Solactive and Solactive makes no representation or warranty, express or implied, regarding the advisability of investing in securities generally or the Securities in particular. Solactive does not guarantee the accuracy or completeness of the Underlying Index or the Target Index, any data included therein, or any data from which it is derived, nor has any liability for any errors, omissions, or interruptions therein.
All capitalized terms unless otherwise defined have the meanings ascribed to them in the Pricing Supplement.
Clients should evaluate the financial, market, legal, regulatory, credit, tax and accounting risks and consequences of the proposal before entering into any transaction, or purchasing any instrument. Clients should evaluate such risks and consequences independently of Royal Bank of Canada and the Dealers, RBC Dominion Securities Inc. ("RBC DS") and iA Private Wealth Inc., respectively. RBC DS is a wholly-owned subsidiary of the Bank. Consequently, the Bank is a related and connected issuer of RBC DS within the meaning of applicable securities legislation.
The Securities will not constitute deposits insured under the Canada Deposit Insurance Corporation Act or any other deposit insurance regime. The Securities are not fixed income securities and are not designed to be alternatives to fixed income or money market instruments.
An investment in the Securities involves risks. None of Royal Bank of Canada, the Dealers or any of their respective affiliates, associates, or any other person or entity guarantees that holders of Securities will receive an amount equal to their original investment in the Securities or guarantees that any return will be paid on the Securities (subject to the minimum amount payable at maturity of $1.00 per Security) at or prior to maturity of the Securities. See "Risk Factors" in the base shelf prospectus and "Risk Factors" in the Pricing Supplement. Since the Securities are not principal protected and the Principal Amount will be at risk, you could lose substantially all of your investment.
® Registered trademark of Royal Bank of Canada
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RBC
Capital Markets