PRELIMINARY KEY TERMS
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CUSIP: 78016HXE5
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Trade Date: April 25, 2023 (expected)
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Settlement Date: April 28, 2023 (expected)
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Valuation Date: April 27, 2026 (expected)
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Maturity Date: April 30, 2026 (expected)
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Automatic Call Amount: 109.00% of the principal amount
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Observation Date: April 26, 2024 (expected)
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Early Redemption Date: May 1, 2024 (expected)
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Term: 3 years, if not automatically called
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Reference Asset: the S&P 500® Index (SPX)
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Leverage Factor: At least 160% (to be determined on the Trade Date)
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Barrier Level: 70% of the Initial Level
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Percentage Change of the Reference Asset:
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PAYMENTS ON THE NOTES
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If the Final Level is greater than the Initial Level on the Maturity Date, the Notes will pay at maturity a return equal to the Percentage Change times the Leverage Factor
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Subject to 1% loss of the principal amount for each 1% that the Reference Asset decreases if the Final Level is less than the Barrier Level.
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The Notes will be automatically called for the Automatic Call Amount if the closing level of the Reference Asset on the Observation Date is greater than or equal to the Initial Level.
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KEY RISK FACTORS
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The notes are subject to Royal Bank of Canada’s credit risk.
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The notes are not principal protected.
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Your notes are likely to have limited liquidity.
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Please see the following page for important risk factor information.
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TAX
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Each investor will agree to treat the notes as a callable pre-paid cash-settled derivative contract for U.S. federal income tax purposes, as described in more detail in the product prospectus supplement.
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PAYMENT AT MATURITY
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You May Lose All or a Substantial Portion of Your Principal Amount, Depending Upon the Performance of the Reference Asset.
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The Notes Do Not Pay Interest and Your Return May Be Lower than the Return on a Conventional Debt Security of Comparable Maturity.
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The Notes Are Subject to an Automatic Call.
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Payments on the Notes Are Subject to Our Credit Risk, and Changes in Our Credit Ratings Are Expected to Affect the Market Value of the Notes.
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There May Not Be an Active Trading Market for the Notes—Sales in the Secondary Market May Result in Significant Losses.
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You Will Not Have Any Rights to the Securities Included in the Reference Asset.
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The Initial Estimated Value of the Notes Will Be Less than the Price to the Public.
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The Initial Estimated Value of the Notes that We Will Provide in the Final Pricing Supplement Will Be an Estimate Only, Calculated as of the Time the Terms of the Notes Are Set.
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Our Business Activities May Create Conflicts of Interest.
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The Payments on the Notes Are Subject to Postponement if a Market Disruption Event Occurs.
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