[FWP] Morgan Stanley Free Writing Prospectus
Bank of Montreal (BMO) is issuing US$6.196 million of Senior Medium-Term Notes, Series K – Autocallable Barrier Notes with Contingent Coupons – linked to Lam Research Corp. (LRCX) common stock.
- Contingent Coupon: 1.1925% monthly (≈14.31% p.a.) paid only if LRCX closes ≥ Coupon Barrier (67% of Initial Level, $65.12) on the relevant Observation Date.
- Automatic Redemption: Starting 30-Dec-2025, if LRCX closes > Initial Level on any Observation Date, the note is redeemed at par plus the coupon; no further payments occur.
- Maturity / Principal Risk: 03-Aug-2026. If not called and LRCX closes < Trigger Level (67% of Initial), investors lose 1% of principal for every 1% decline (down to zero). If LRCX stays ≥ Trigger Level, principal is returned.
- Issue Economics: Price to public 100%; estimated initial value $972.97 (≈97.3% of face) reflecting embedded fees/hedging. Agent’s commission 2.15%.
- Denomination & Liquidity: $1,000 minimum. Unlisted; secondary market, if any, only through BMOCM. Value sensitive to BMO credit spreads and market volatility.
- Credit & Tax: Unsecured BMO obligation; subject to BMO credit risk and complex U.S. tax treatment (pre-paid contingent income-bearing derivative).
The product targets investors seeking high conditional income and limited downside buffer, willing to forego upside above coupons, accept potential principal loss below a 33% decline, and tolerate issuer credit and liquidity risks.
Bank of Montreal (BMO) emette 6,196 milioni di dollari USA di Senior Medium-Term Notes, Serie K – Note Autocallable con Barriera e Cedole Contingenti – collegate al titolo azionario comune di Lam Research Corp. (LRCX).
- Cedola Contingente: 1,1925% mensile (circa 14,31% annuo) pagata solo se LRCX chiude ≥ Barriera Cedola (67% del Livello Iniziale, 65,12$) alla data di osservazione rilevante.
- Rimborso Automatico: Dal 30-dic-2025, se LRCX chiude > Livello Iniziale in una qualsiasi data di osservazione, la nota viene rimborsata a valore nominale più la cedola; non si effettuano ulteriori pagamenti.
- Scadenza / Rischio Capitale: 03-ago-2026. Se non richiamata e LRCX chiude < Livello di Attivazione (67% del Livello Iniziale), gli investitori perdono l'1% del capitale per ogni 1% di calo (fino a zero). Se LRCX rimane ≥ Livello di Attivazione, il capitale viene restituito.
- Economia dell’Emissione: Prezzo al pubblico 100%; valore iniziale stimato 972,97$ (circa 97,3% del valore nominale) che riflette commissioni e coperture incorporate. Commissione agente 2,15%.
- Taglio e Liquidità: Minimo 1.000$. Non quotato; mercato secondario, se presente, solo tramite BMOCM. Valore sensibile agli spread creditizi di BMO e alla volatilità di mercato.
- Credito e Fiscalità: Obbligazione non garantita di BMO; soggetta al rischio di credito BMO e a una complessa normativa fiscale USA (derivato prepagato con cedole contingenti).
Il prodotto è rivolto a investitori che cercano un reddito condizionato elevato con un buffer limitato al ribasso, disposti a rinunciare a guadagni superiori alle cedole, accettare potenziali perdite di capitale in caso di calo superiore al 33% e tollerare rischi di credito dell’emittente e di liquidità.
Bank of Montreal (BMO) emite 6.196 millones de dólares estadounidenses en Senior Medium-Term Notes, Serie K – Notas Autollamables con Barrera y Cupones Contingentes – vinculadas a la acción común de Lam Research Corp. (LRCX).
- Cupon Contingente: 1,1925% mensual (≈14,31% anual) pagado solo si LRCX cierra ≥ Barrera de Cupón (67% del Nivel Inicial, $65.12) en la fecha de observación correspondiente.
- Redención Automática: A partir del 30-dic-2025, si LRCX cierra > Nivel Inicial en cualquier fecha de observación, la nota se redime al valor nominal más el cupón; no se realizan pagos adicionales.
- Vencimiento / Riesgo de Principal: 03-ago-2026. Si no es llamada y LRCX cierra < Nivel de Activación (67% del Inicial), los inversores pierden 1% del principal por cada 1% de caída (hasta cero). Si LRCX se mantiene ≥ Nivel de Activación, se devuelve el principal.
- Economía de la Emisión: Precio al público 100%; valor inicial estimado $972.97 (≈97,3% del nominal) reflejando comisiones y cobertura incorporadas. Comisión del agente 2,15%.
- Denominación y Liquidez: Mínimo $1,000. No listado; mercado secundario, si existe, solo a través de BMOCM. Valor sensible a los spreads crediticios de BMO y a la volatilidad del mercado.
- Crédito e Impuestos: Obligación no garantizada de BMO; sujeto a riesgo crediticio de BMO y a un tratamiento fiscal complejo en EE.UU. (derivado prepagado con ingresos contingentes).
El producto está dirigido a inversores que buscan ingresos condicionales altos con un margen limitado a la baja, dispuestos a renunciar a ganancias superiores a los cupones, aceptar posible pérdida de principal si la caída supera el 33% y tolerar riesgos de crédito del emisor y de liquidez.
뱅크 오브 몬트리올(BMO)이 6,196만 미국 달러 규모의 시니어 중기채권 시리즈 K – 자동상환 배리어 노트(조건부 쿠폰 포함)를 발행하며, Lam Research Corp.(LRCX) 보통주에 연동됩니다.
- 조건부 쿠폰: 월 1.1925%(연 약 14.31%)로, 해당 관측일에 LRCX 종가가 쿠폰 배리어(초기 수준의 67%, $65.12) 이상일 때만 지급됩니다.
- 자동 상환: 2025년 12월 30일부터, 관측일에 LRCX 종가가 초기 수준 초과 시 액면가와 쿠폰을 합산하여 상환하며, 이후 추가 지급은 없습니다.
- 만기 / 원금 위험: 2026년 8월 3일 만기. 상환되지 않고 LRCX 종가가 트리거 레벨(초기 수준의 67%) 미만일 경우, 1% 하락마다 원금 1% 손실 발생(최대 원금 전액 손실). LRCX가 트리거 레벨 이상이면 원금 전액 상환.
- 발행 조건: 공모가 100%; 초기 예상 가치 $972.97(액면가의 약 97.3%)로 수수료 및 헤지 비용 반영. 대리인 수수료 2.15%.
- 액면가 및 유동성: 최소 $1,000. 비상장; 2차 시장은 BMOCM을 통해서만 가능. BMO 신용 스프레드 및 시장 변동성에 민감.
- 신용 및 세금: BMO의 무담보 채무; BMO 신용 위험 및 복잡한 미국 세금 처리(선불 조건부 수익 파생상품) 대상.
이 상품은 높은 조건부 수익과 제한된 하락 보호를 추구하며, 쿠폰 이상의 상승 포기를 감수하고, 33% 이상 하락 시 원금 손실 가능성을 받아들이며, 발행사 신용 및 유동성 위험을 감내할 투자자를 대상으로 합니다.
Bank of Montreal (BMO) émet 6,196 millions de dollars US de Senior Medium-Term Notes, Série K – Notes à Barrière Autocallables avec Coupons Conditionnels – liées aux actions ordinaires de Lam Research Corp. (LRCX).
- Coupon Conditionnel : 1,1925 % mensuel (≈14,31 % par an) versé uniquement si LRCX clôture ≥ Barrière de Coupon (67 % du Niveau Initial, 65,12 $) à la date d’observation concernée.
- Remboursement Automatique : À partir du 30 décembre 2025, si LRCX clôture > Niveau Initial à une date d’observation, la note est remboursée à sa valeur nominale plus le coupon ; aucun paiement supplémentaire n’a lieu.
- Échéance / Risque de Principal : 03 août 2026. Si non rappelée et que LRCX clôture < Niveau de Déclenchement (67 % du Niveau Initial), les investisseurs perdent 1 % du principal pour chaque baisse de 1 % (jusqu’à zéro). Si LRCX reste ≥ Niveau de Déclenchement, le principal est remboursé.
- Économie de l’Émission : Prix public à 100 % ; valeur initiale estimée 972,97 $ (≈97,3 % de la valeur nominale) reflétant frais et couverture intégrés. Commission de l’agent 2,15 %.
- Nominal & Liquidité : Minimum 1 000 $. Non coté ; marché secondaire, si existant, uniquement via BMOCM. Valeur sensible aux spreads de crédit BMO et à la volatilité du marché.
- Crédit & Fiscalité : Obligation non garantie de BMO ; soumise au risque de crédit BMO et à une fiscalité américaine complexe (produit dérivé prépayé à revenu conditionnel).
Le produit s’adresse aux investisseurs recherchant un revenu conditionnel élevé avec une protection limitée à la baisse, prêts à renoncer à un potentiel de hausse au-delà des coupons, à accepter une perte potentielle de capital en cas de baisse supérieure à 33 %, et à tolérer les risques de crédit de l’émetteur ainsi que de liquidité.
Bank of Montreal (BMO) gibt Senior Medium-Term Notes im Wert von 6,196 Mio. USD aus, Serie K – Autocallable Barrier Notes mit bedingten Kupons – verknüpft mit Stammaktien von Lam Research Corp. (LRCX).
- Bedingter Kupon: 1,1925 % monatlich (≈14,31 % p.a.), zahlbar nur wenn LRCX an dem jeweiligen Beobachtungstag ≥ Kupon-Barriere (67 % des Anfangsniveaus, 65,12 $) schließt.
- Automatische Rückzahlung: Ab dem 30.12.2025 wird die Note zurückgezahlt zum Nennwert plus Kupon, wenn LRCX an einem Beobachtungstag > Anfangsniveau schließt; keine weiteren Zahlungen folgen.
- Fälligkeit / Kapitalrisiko: 03.08.2026. Wenn nicht zurückgerufen und LRCX unter dem Auslöselevel (67 % des Anfangsniveaus) schließt, verlieren Anleger 1 % des Kapitals pro 1 % Kursrückgang (bis auf Null). Bleibt LRCX ≥ Auslöselevel, wird das Kapital zurückgezahlt.
- Emission Economics: Ausgabepreis 100 %; geschätzter Anfangswert 972,97 $ (≈97,3 % des Nennwerts), inklusive Gebühren und Hedging. Agenturprovision 2,15 %.
- Nennwert & Liquidität: Mindestens 1.000 $. Nicht börsennotiert; Sekundärmarkt, falls vorhanden, nur über BMOCM. Wert sensitiv gegenüber BMO-Kreditspreads und Marktvolatilität.
- Kredit & Steuern: Unbesicherte BMO-Verbindlichkeit; unterliegt BMO-Kreditrisiko und komplexer US-Steuerbehandlung (vorausbezahltes derivates Produkt mit bedingtem Einkommen).
Das Produkt richtet sich an Anleger, die ein hohes bedingtes Einkommen mit begrenztem Abwärtspuffer suchen, bereit sind, auf Gewinne über die Kupons hinaus zu verzichten, potenzielle Kapitalverluste bei einem Rückgang über 33 % zu akzeptieren und Emittenten-Kredit- sowie Liquiditätsrisiken in Kauf nehmen.
- Attractive contingent income: 1.1925% monthly coupon (≈14.31% p.a.) if performance conditions met.
- 33% downside buffer: Principal protected unless LRCX falls more than 33% at valuation date.
- Early autocall feature can return capital quickly if LRCX performs, reducing market exposure.
- Principal at risk: Any finish below the 67% trigger leads to proportional losses, potentially total loss.
- No participation in upside: Return capped at coupons; investors miss any equity appreciation beyond call level.
- Credit & liquidity risk: Unsecured BMO obligation; unlisted notes with limited secondary market and price transparency.
- Estimated value discount: Initial fair value 97.3% of par highlights embedded fees.
- Complex tax treatment and uncertain future IRS guidance for prepaid derivative contracts.
Insights
TL;DR: High 14.3% coupon offset by 33% downside buffer, no upside, credit and liquidity risks keep overall appeal neutral.
Income profile: The 1.1925% monthly coupon is attractive versus short-dated corporates, but entirely conditional on LRCX staying ≥ $65.12. Volatility in semiconductor equities means missed coupons are plausible.
Redemption dynamics: Autocall at 100% Initial can shorten duration to six months, capping yield but limiting exposure period.
Risk/return trade-off: Investors absorb full equity downside beyond −33%, yet surrender upside beyond coupons. Simulation shows breakeven relative to par at maturity requires LRCX ≥ Trigger; historically, LRCX has traded with 30-40% annualized volatility, implying non-trivial tail risk.
Issuer economics: 2.7-point OID plus 2.15% commission signal a sizeable structuring spread. Secondary values likely to start around 95-97% and drift lower absent favorable equity moves.
Credit overlay: Note holders rank pari passu with BMO senior debt; current BMO CDS ~60 bps, modest but still an added layer versus holding LRCX shares directly.
Verdict: Suitable for yield-seeking accounts comfortable with equity-linked notes; impact neutral given balanced reward and risk.
Bank of Montreal (BMO) emette 6,196 milioni di dollari USA di Senior Medium-Term Notes, Serie K – Note Autocallable con Barriera e Cedole Contingenti – collegate al titolo azionario comune di Lam Research Corp. (LRCX).
- Cedola Contingente: 1,1925% mensile (circa 14,31% annuo) pagata solo se LRCX chiude ≥ Barriera Cedola (67% del Livello Iniziale, 65,12$) alla data di osservazione rilevante.
- Rimborso Automatico: Dal 30-dic-2025, se LRCX chiude > Livello Iniziale in una qualsiasi data di osservazione, la nota viene rimborsata a valore nominale più la cedola; non si effettuano ulteriori pagamenti.
- Scadenza / Rischio Capitale: 03-ago-2026. Se non richiamata e LRCX chiude < Livello di Attivazione (67% del Livello Iniziale), gli investitori perdono l'1% del capitale per ogni 1% di calo (fino a zero). Se LRCX rimane ≥ Livello di Attivazione, il capitale viene restituito.
- Economia dell’Emissione: Prezzo al pubblico 100%; valore iniziale stimato 972,97$ (circa 97,3% del valore nominale) che riflette commissioni e coperture incorporate. Commissione agente 2,15%.
- Taglio e Liquidità: Minimo 1.000$. Non quotato; mercato secondario, se presente, solo tramite BMOCM. Valore sensibile agli spread creditizi di BMO e alla volatilità di mercato.
- Credito e Fiscalità: Obbligazione non garantita di BMO; soggetta al rischio di credito BMO e a una complessa normativa fiscale USA (derivato prepagato con cedole contingenti).
Il prodotto è rivolto a investitori che cercano un reddito condizionato elevato con un buffer limitato al ribasso, disposti a rinunciare a guadagni superiori alle cedole, accettare potenziali perdite di capitale in caso di calo superiore al 33% e tollerare rischi di credito dell’emittente e di liquidità.
Bank of Montreal (BMO) emite 6.196 millones de dólares estadounidenses en Senior Medium-Term Notes, Serie K – Notas Autollamables con Barrera y Cupones Contingentes – vinculadas a la acción común de Lam Research Corp. (LRCX).
- Cupon Contingente: 1,1925% mensual (≈14,31% anual) pagado solo si LRCX cierra ≥ Barrera de Cupón (67% del Nivel Inicial, $65.12) en la fecha de observación correspondiente.
- Redención Automática: A partir del 30-dic-2025, si LRCX cierra > Nivel Inicial en cualquier fecha de observación, la nota se redime al valor nominal más el cupón; no se realizan pagos adicionales.
- Vencimiento / Riesgo de Principal: 03-ago-2026. Si no es llamada y LRCX cierra < Nivel de Activación (67% del Inicial), los inversores pierden 1% del principal por cada 1% de caída (hasta cero). Si LRCX se mantiene ≥ Nivel de Activación, se devuelve el principal.
- Economía de la Emisión: Precio al público 100%; valor inicial estimado $972.97 (≈97,3% del nominal) reflejando comisiones y cobertura incorporadas. Comisión del agente 2,15%.
- Denominación y Liquidez: Mínimo $1,000. No listado; mercado secundario, si existe, solo a través de BMOCM. Valor sensible a los spreads crediticios de BMO y a la volatilidad del mercado.
- Crédito e Impuestos: Obligación no garantizada de BMO; sujeto a riesgo crediticio de BMO y a un tratamiento fiscal complejo en EE.UU. (derivado prepagado con ingresos contingentes).
El producto está dirigido a inversores que buscan ingresos condicionales altos con un margen limitado a la baja, dispuestos a renunciar a ganancias superiores a los cupones, aceptar posible pérdida de principal si la caída supera el 33% y tolerar riesgos de crédito del emisor y de liquidez.
뱅크 오브 몬트리올(BMO)이 6,196만 미국 달러 규모의 시니어 중기채권 시리즈 K – 자동상환 배리어 노트(조건부 쿠폰 포함)를 발행하며, Lam Research Corp.(LRCX) 보통주에 연동됩니다.
- 조건부 쿠폰: 월 1.1925%(연 약 14.31%)로, 해당 관측일에 LRCX 종가가 쿠폰 배리어(초기 수준의 67%, $65.12) 이상일 때만 지급됩니다.
- 자동 상환: 2025년 12월 30일부터, 관측일에 LRCX 종가가 초기 수준 초과 시 액면가와 쿠폰을 합산하여 상환하며, 이후 추가 지급은 없습니다.
- 만기 / 원금 위험: 2026년 8월 3일 만기. 상환되지 않고 LRCX 종가가 트리거 레벨(초기 수준의 67%) 미만일 경우, 1% 하락마다 원금 1% 손실 발생(최대 원금 전액 손실). LRCX가 트리거 레벨 이상이면 원금 전액 상환.
- 발행 조건: 공모가 100%; 초기 예상 가치 $972.97(액면가의 약 97.3%)로 수수료 및 헤지 비용 반영. 대리인 수수료 2.15%.
- 액면가 및 유동성: 최소 $1,000. 비상장; 2차 시장은 BMOCM을 통해서만 가능. BMO 신용 스프레드 및 시장 변동성에 민감.
- 신용 및 세금: BMO의 무담보 채무; BMO 신용 위험 및 복잡한 미국 세금 처리(선불 조건부 수익 파생상품) 대상.
이 상품은 높은 조건부 수익과 제한된 하락 보호를 추구하며, 쿠폰 이상의 상승 포기를 감수하고, 33% 이상 하락 시 원금 손실 가능성을 받아들이며, 발행사 신용 및 유동성 위험을 감내할 투자자를 대상으로 합니다.
Bank of Montreal (BMO) émet 6,196 millions de dollars US de Senior Medium-Term Notes, Série K – Notes à Barrière Autocallables avec Coupons Conditionnels – liées aux actions ordinaires de Lam Research Corp. (LRCX).
- Coupon Conditionnel : 1,1925 % mensuel (≈14,31 % par an) versé uniquement si LRCX clôture ≥ Barrière de Coupon (67 % du Niveau Initial, 65,12 $) à la date d’observation concernée.
- Remboursement Automatique : À partir du 30 décembre 2025, si LRCX clôture > Niveau Initial à une date d’observation, la note est remboursée à sa valeur nominale plus le coupon ; aucun paiement supplémentaire n’a lieu.
- Échéance / Risque de Principal : 03 août 2026. Si non rappelée et que LRCX clôture < Niveau de Déclenchement (67 % du Niveau Initial), les investisseurs perdent 1 % du principal pour chaque baisse de 1 % (jusqu’à zéro). Si LRCX reste ≥ Niveau de Déclenchement, le principal est remboursé.
- Économie de l’Émission : Prix public à 100 % ; valeur initiale estimée 972,97 $ (≈97,3 % de la valeur nominale) reflétant frais et couverture intégrés. Commission de l’agent 2,15 %.
- Nominal & Liquidité : Minimum 1 000 $. Non coté ; marché secondaire, si existant, uniquement via BMOCM. Valeur sensible aux spreads de crédit BMO et à la volatilité du marché.
- Crédit & Fiscalité : Obligation non garantie de BMO ; soumise au risque de crédit BMO et à une fiscalité américaine complexe (produit dérivé prépayé à revenu conditionnel).
Le produit s’adresse aux investisseurs recherchant un revenu conditionnel élevé avec une protection limitée à la baisse, prêts à renoncer à un potentiel de hausse au-delà des coupons, à accepter une perte potentielle de capital en cas de baisse supérieure à 33 %, et à tolérer les risques de crédit de l’émetteur ainsi que de liquidité.
Bank of Montreal (BMO) gibt Senior Medium-Term Notes im Wert von 6,196 Mio. USD aus, Serie K – Autocallable Barrier Notes mit bedingten Kupons – verknüpft mit Stammaktien von Lam Research Corp. (LRCX).
- Bedingter Kupon: 1,1925 % monatlich (≈14,31 % p.a.), zahlbar nur wenn LRCX an dem jeweiligen Beobachtungstag ≥ Kupon-Barriere (67 % des Anfangsniveaus, 65,12 $) schließt.
- Automatische Rückzahlung: Ab dem 30.12.2025 wird die Note zurückgezahlt zum Nennwert plus Kupon, wenn LRCX an einem Beobachtungstag > Anfangsniveau schließt; keine weiteren Zahlungen folgen.
- Fälligkeit / Kapitalrisiko: 03.08.2026. Wenn nicht zurückgerufen und LRCX unter dem Auslöselevel (67 % des Anfangsniveaus) schließt, verlieren Anleger 1 % des Kapitals pro 1 % Kursrückgang (bis auf Null). Bleibt LRCX ≥ Auslöselevel, wird das Kapital zurückgezahlt.
- Emission Economics: Ausgabepreis 100 %; geschätzter Anfangswert 972,97 $ (≈97,3 % des Nennwerts), inklusive Gebühren und Hedging. Agenturprovision 2,15 %.
- Nennwert & Liquidität: Mindestens 1.000 $. Nicht börsennotiert; Sekundärmarkt, falls vorhanden, nur über BMOCM. Wert sensitiv gegenüber BMO-Kreditspreads und Marktvolatilität.
- Kredit & Steuern: Unbesicherte BMO-Verbindlichkeit; unterliegt BMO-Kreditrisiko und komplexer US-Steuerbehandlung (vorausbezahltes derivates Produkt mit bedingtem Einkommen).
Das Produkt richtet sich an Anleger, die ein hohes bedingtes Einkommen mit begrenztem Abwärtspuffer suchen, bereit sind, auf Gewinne über die Kupons hinaus zu verzichten, potenzielle Kapitalverluste bei einem Rückgang über 33 % zu akzeptieren und Emittenten-Kredit- sowie Liquiditätsrisiken in Kauf nehmen.
Free Writing Prospectus to Preliminary Pricing Supplement No. 9,168
Registration Statement Nos. 333-275587; 333-275587-01
Dated July 1, 2025; Filed pursuant to Rule 433
Morgan Stanley
SPXFP Enhanced Buffered Jump Securities due August 1, 2030
This document provides a summary of the terms of the securities. Investors must carefully review the accompanying preliminary pricing supplement referenced below, product supplement, index supplement and prospectus, and the “Risk Considerations” on the following page, prior to making an investment decision.
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Terms |
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Issuer: |
Morgan Stanley Finance LLC |
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Guarantor: |
Morgan Stanley |
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Underlier: |
S&P 500® Futures Excess Return Index (SPXFP) |
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Upside payment: |
$410 per security (41% of the stated principal amount) |
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Maximum payment at maturity: |
$1,600 per security (160% of the stated principal amount) |
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Buffer amount: |
15% (85% maximum loss)1 |
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Pricing date: |
July 28, 2025 |
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Observation date: |
July 29, 2030 |
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Maturity date: |
August 1, 2030 |
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CUSIP: |
61778NFK2 |
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Estimated value: |
$941.60 per security, or within $55.00 of that estimate |
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Preliminary pricing supplement: |
https://www.sec.gov/Archives/edgar/data/895421/000183988225036147/ms9168_424b2-19776.htm |
1All payments are subject to our credit risk
Hypothetical Payment at Maturity1
The payoff diagram and table below illustrate the payment at maturity for a range of hypothetical performances of the underlier over the term of the securities.
|
% Change in Closing Level of the Underlier |
Payment at Maturity per Security |
|
+100.00% |
$1,600.00 |
|
+80.00% |
$1,600.00 |
|
+60.00% |
$1,600.00 |
|
+50.00% |
$1,500.00 |
|
+41.00% |
$1,410.00 |
|
+40.00% |
$1,410.00 |
|
+20.00% |
$1,410.00 |
|
0.00% |
$1,410.00 |
|
-15.00% |
$1,410.00 |
|
-16.00% |
$990.00 |
|
-20.00% |
$950.00 |
|
-40.00% |
$750.00 |
|
-60.00% |
$550.00 |
|
-80.00% |
$350.00 |
|
-100.00% |
$150.00 |
|
|
|
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 Web site at www.sec.gov. Alternatively, the issuer, any underwriter or any dealer participating in the offering will arrange to send you the prospectus if you request it by calling toll-free 1-800-584-6837.
Underlier(s)
For more information about the underlier(s), including historical performance information, see the accompanying preliminary pricing supplement.
Risk Considerations
The risks set forth below are discussed in more detail in the “Risk Factors” section in the accompanying preliminary pricing supplement. Please review those risk factors carefully prior to making an investment decision.
Risks Relating to an Investment in the Securities
●The securities provide for only the minimum payment at maturity and do not pay interest.
●The appreciation potential of the securities is limited by the maximum payment at maturity.
●The amount payable on the securities is not linked to the value of the underlier at any time other than the observation date.
●The market price of the securities may be influenced by many unpredictable factors.
●The securities are subject to our credit risk, and any actual or anticipated changes to our credit ratings or credit spreads may adversely affect the market value of the securities.
●As a finance subsidiary, MSFL has no independent operations and will have no independent assets.
●The rate we are willing to pay for securities of this type, maturity and issuance size is likely to be lower than the rate implied by our secondary market credit spreads and advantageous to us. Both the lower rate and the inclusion of costs associated with issuing, selling, structuring and hedging the securities in the original issue price reduce the economic terms of the securities, cause the estimated value of the securities to be less than the original issue price and will adversely affect secondary market prices.
●The estimated value of the securities is determined by reference to our pricing and valuation models, which may differ from those of other dealers and is not a maximum or minimum secondary market price.
●The securities will not be listed on any securities exchange and secondary trading may be limited.
●As discussed in more detail in the accompanying product supplement, investing in the securities is not equivalent to investing in the underlier(s).
●The U.S. federal income tax consequences of an investment in the securities are uncertain.
Risks Relating to the Underlier(s)
●Because your return on the securities will depend upon the performance of the underlier(s), the securities are subject to the following risk(s), as discussed in more detail in the accompanying product supplement.
oHigher future prices of a futures contract to which the underlier is linked relative to its current prices may adversely affect the value of the underlier and the value of the securities.
oSuspensions or disruptions of market trading in futures markets could adversely affect the value of the securities.
oLegal and regulatory changes could adversely affect the return on and value of the securities.
●Adjustments to the S&P 500® Futures Excess Return Index could adversely affect the value of the securities.
Risks Relating to Conflicts of Interest
●The calculation agent, which is a subsidiary of Morgan Stanley and an affiliate of MSFL, will make determinations with respect to the securities.
●Hedging and trading activity by our affiliates could potentially adversely affect the value of the securities.
Tax Considerations
You should review carefully the discussion in the accompanying preliminary pricing supplement under the caption “Additional Information About the Securities– United States federal income tax considerations” concerning the U.S. federal income tax consequences of an investment in the securities, and you should consult your tax adviser.
FAQ
What is the contingent interest rate on the BMO LRCX-linked notes?
When can the autocall feature trigger for these notes?
How much downside protection do investors have?
Are the notes listed on an exchange?
What is the estimated initial value compared with the issue price?
Do holders receive any Lam Research dividends?
What credit risk do investors assume?
