The issuer’s initial estimated value of the securities as of the date of the accompanying pricing supplement is $937.50 per $1,000 in principal amount, which is less than the public offering price.  The market value of the securities at any time will reflect many factors, cannot be predicted with accuracy, and may be less than this amount.  See “Risk Factors” and “Supplemental Plan of Distribution – Structuring the Securities” in the accompanying pricing supplement for further information.

The securities have complex features and investing in the securities involves risks not associated with an investment in conventional debt securities.  See “Selected Risk Considerations” in this term sheet and “Risk Factors” in the accompanying pricing supplement and prospectus supplement.

 

Hypothetical returns

(1)	This is the Buffer Level.

(2)	This is the Initial Index Level.

(3)	This is the maximum maturity payment amount of $1,510.00

 

How the maturity payment amount is calculated

The maturity payment amount will be determined as follows:

·	If the Final Index Level is greater than the Initial Index Level, the maturity payment amount per security will equal the lesser of:

(i)

(ii)

the maximum maturity payment amount

·	If the Final Index Level is equal to or less than the Initial Index Level but greater than or equal to the Buffer Level, the maturity payment amount per security will equal the issue price of $1,000.00

·	If the Final Index Level is less than the Buffer Level, the maturity payment amount per security will equal:

In such a case, you will lose up to 85% of your principal.

S&P 500^® Index daily closing levels*

*The graph above sets forth the daily closing levels of the Index for the period from January 1, 2007 to February 28, 2017. The closing level on February 28, 2017 was 2,363.64.  The historical performance of the Index is not an indication of its future performance during the term of the securities.

Selected risk considerations

The risks set forth below are discussed in detail in the “Risk Factors” section in the accompanying pricing supplement.  Please review those risk disclosures carefully.

·	Your investment may result in a loss of up to 85% of your principal

·	You will not receive interest payments on the securities

·	Your yield may be lower than the yield on a standard debt security of comparable maturity

·	Your return is limited and will not reflect the return of owning the common stocks represented by the Index

·	Owning the securities is not the same as owning the common stocks represented by the Index

 

·	There may not be an active trading market for the securities

·	The amount to be paid at maturity is not linked to the level of the Index at any time other than the valuation date

·	Many factors affect the market value of the securities

·	The securities will be debt obligations of Royal Bank of Canada.  No other company or entity will be responsible for payments under the securities

·	We have no affiliation with the sponsor of the Index  and will not be responsible for any actions taken by the sponsor

·	Historical levels of the Index should not be taken as an indication of the future levels of the Index during the term of the securities

·	Hedging transactions may affect the return on the securities

·	Our initial estimated value of the securities is less than the initial public offering price

·	The price, if any, at which you may be able to sell your securities prior to maturity may be less than the initial public offering price and our initial estimated value

·	The initial estimated value of the securities is an estimate only, calculated as of the time the terms of the securities were set

·	Potential conflicts of interest could arise

·	The calculation agent may postpone the valuation date and, therefore, determination of the Final Index Level and the maturity date if a market disruption event occurs on the valuation date

·	There are potential conflicts of interest between you and the calculation agent

·	The tax treatment of the securities is uncertain and gain on the securities may  be treated as ordinary income under the constructive ownership rules

Investment suitability must be determined individually for each investor. The securities described herein are not a suitable investment for all investors. In particular, no investor should purchase the securities unless they understand and are able to bear the associated market, liquidity and yield risks. Unless market conditions and other relevant factors change significantly in your favor, a sale of the securities prior to maturity is likely to result in sale proceeds that are substantially less than the initial public offering price per security. Royal Bank of Canada, Wells Fargo Securities, LLC and their respective affiliates are not obligated to purchase the securities from you at any time prior to maturity.

The issuer has filed a registration statement (including a prospectus) with the SEC for the offering to which this communication relates.  Before you invest, you should read the prospectus in that registration statement and other documents the issuer has filed with the SEC for more complete information about the issuer and this offering.  You may get these documents for free by visiting EDGAR on the SEC website at www.sec.gov.  Alternatively, any underwriter or any dealer participating in the offering will arrange to send you the prospectus if you request it by calling your financial advisor or by calling Royal Bank of Canada at 1-866-609-6009.

Wells Fargo Advisors is a trade name used by Wells Fargo Clearing Services, LLC and Wells Fargo Advisors Financial Network, LLC, members SIPC, separate registered broker-dealers and non-bank affiliates of Wells Fargo & Company.

Investors should review carefully the accompanying pricing supplement, prospectus supplement and prospectus and consult their tax advisors regarding the application of the U.S. federal income tax laws to their particular circumstances, as well as any tax consequences arising under the laws of any state, local or foreign jurisdiction.

 

 

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