[FWP] Morgan Stanley Free Writing Prospectus
Royal Bank of Canada (RY) is offering US$48.99 million of Accelerated Return Notes (ARNs) linked to the EURO STOXX 50 Index. The issuance comprises 4,898,973 units with a $10 face value each, priced on June 26 2025, settling July 3 2025 and maturing August 28 2026 (≈14 months).
Pay-off profile:
- 300% participation in any positive index performance, subject to a maximum redemption of $11.942 per unit (19.42% cap).
- 1-for-1 downside exposure: investors lose principal in proportion to any decline in the EURO STOXX 50; total loss possible.
- No interim coupons or dividends; payment occurs only at maturity.
The notes are senior unsecured obligations of RBC. All amounts are subject to RBC’s credit risk and are not covered by FDIC, CDIC or other insurance schemes.
Pricing economics: Public offering price is $10.00, but the initial estimated value is $9.72, reflecting (i) RBC’s lower internal funding rate, (ii) a $0.175 underwriting discount and (iii) a $0.05 hedging-related charge. Net proceeds to RBC, before expenses, are $9.825 per unit ($48.13 million total).
Key terms:
- Starting Value: 5,244.03 (EURO STOXX 50 closing on pricing date).
- Maturity Valuation Period: Aug 19–25 2026 (5 observation days).
- Calculation Agent: BofA Securities.
- Limited or no secondary market; notes will not be listed on any exchange.
Principal risks highlighted: full downside risk, capped upside, illiquidity, valuation below offer price, conflicts of interest in hedging/calculation, uncertain U.S. tax treatment, exposure to Eurozone market and currency factors, and complete reliance on RBC creditworthiness.
Royal Bank of Canada (RY) offre note di rendimento accelerato (ARN) per un valore totale di 48,99 milioni di dollari USA, legate all'indice EURO STOXX 50. L'emissione comprende 4.898.973 unità con un valore nominale di 10 dollari ciascuna, con prezzo fissato al 26 giugno 2025, regolamento il 3 luglio 2025 e scadenza il 28 agosto 2026 (circa 14 mesi).
Profilo di rendimento:
- Partecipazione al 300% in qualsiasi performance positiva dell'indice, con un rimborso massimo di 11,942 dollari per unità (limite del 19,42%).
- Esposizione 1 a 1 al ribasso: gli investitori perdono il capitale in proporzione a qualsiasi calo dell'indice EURO STOXX 50; è possibile la perdita totale.
- Non sono previsti coupon o dividendi intermedi; il pagamento avviene solo alla scadenza.
Le note sono obbligazioni senior non garantite di RBC. Tutti gli importi sono soggetti al rischio di credito di RBC e non sono coperti da FDIC, CDIC o altre assicurazioni.
Economia del prezzo: Il prezzo di offerta pubblica è 10,00 dollari, ma il valore stimato iniziale è 9,72 dollari, riflettendo (i) un tasso di finanziamento interno più basso di RBC, (ii) uno sconto di sottoscrizione di 0,175 dollari e (iii) un costo di copertura di 0,05 dollari. Il ricavo netto per RBC, prima delle spese, è di 9,825 dollari per unità (48,13 milioni di dollari in totale).
Termini chiave:
- Valore iniziale: 5.244,03 (chiusura EURO STOXX 50 alla data di prezzo).
- Periodo di valutazione a scadenza: 19-25 agosto 2026 (5 giorni di osservazione).
- Agente di calcolo: BofA Securities.
- Mercato secondario limitato o assente; le note non saranno quotate in alcuna borsa.
Principali rischi evidenziati: rischio totale al ribasso, rendimento massimo limitato, illiquidità, valutazione inferiore al prezzo di offerta, conflitti di interesse nella copertura/calcolo, trattamento fiscale USA incerto, esposizione ai fattori di mercato e valuta dell'Eurozona e completa dipendenza dalla solvibilità di RBC.
Royal Bank of Canada (RY) ofrece Notas de Retorno Acelerado (ARN) por valor de 48,99 millones de dólares estadounidenses, vinculadas al índice EURO STOXX 50. La emisión consta de 4.898.973 unidades con un valor nominal de 10 dólares cada una, con precio fijado el 26 de junio de 2025, liquidación el 3 de julio de 2025 y vencimiento el 28 de agosto de 2026 (aproximadamente 14 meses).
Perfil de pago:
- Participación del 300% en cualquier rendimiento positivo del índice, con un reembolso máximo de 11,942 dólares por unidad (tope del 19,42%).
- Exposición a la baja 1 a 1: los inversores pierden el principal en proporción a cualquier caída del índice EURO STOXX 50; pérdida total posible.
- No hay cupones o dividendos intermedios; el pago se realiza solo al vencimiento.
Las notas son obligaciones senior no garantizadas de RBC. Todos los montos están sujetos al riesgo crediticio de RBC y no están cubiertos por FDIC, CDIC u otros seguros.
Economía del precio: El precio de oferta pública es de 10,00 dólares, pero el valor estimado inicial es de 9,72 dólares, reflejando (i) una tasa interna de financiamiento más baja de RBC, (ii) un descuento de suscripción de 0,175 dólares y (iii) un coste relacionado con cobertura de 0,05 dólares. Los ingresos netos para RBC, antes de gastos, son de 9,825 dólares por unidad (48,13 millones de dólares en total).
Términos clave:
- Valor inicial: 5.244,03 (cierre del EURO STOXX 50 en la fecha de precio).
- Período de valoración al vencimiento: 19-25 de agosto de 2026 (5 días de observación).
- Agente de cálculo: BofA Securities.
- Mercado secundario limitado o inexistente; las notas no se cotizarán en ninguna bolsa.
Riesgos principales destacados: riesgo total a la baja, techo en el rendimiento, iliquidez, valoración por debajo del precio de oferta, conflictos de interés en cobertura/cálculo, tratamiento fiscal estadounidense incierto, exposición a factores de mercado y moneda de la Eurozona y dependencia total de la solvencia de RBC.
로열 뱅크 오브 캐나다(RY)는 EURO STOXX 50 지수에 연동된 가속 수익 노트(ARN)를 미화 4,899만 달러 규모로 제공합니다. 이번 발행은 각 단위당 액면가 10달러인 4,898,973 단위로 구성되며, 2025년 6월 26일 가격 결정, 2025년 7월 3일 결제, 2026년 8월 28일 만기(약 14개월)입니다.
수익 구조:
- 지수 상승 시 300% 참여, 단위당 최대 상환금액은 11.942달러로 제한(19.42% 상한).
- 1대1 하락 노출: 투자자는 EURO STOXX 50 지수 하락에 비례하여 원금 손실 가능, 전액 손실 가능성 있음.
- 중간 쿠폰이나 배당금 없음; 지급은 만기 시에만 이루어짐.
이 노트는 RBC의 선순위 무담보 채무입니다. 모든 금액은 RBC의 신용 위험에 노출되며 FDIC, CDIC 또는 기타 보험 제도의 보호를 받지 않습니다.
가격 구조: 공모가는 10.00달러이나, 초기 예상 가치는 9.72달러로, (i) RBC의 낮은 내부 자금 조달 비용, (ii) 0.175달러의 인수 할인, (iii) 0.05달러의 헤지 관련 비용을 반영합니다. 수수료 제외 순수익은 단위당 9.825달러(총 4,813만 달러)입니다.
주요 조건:
- 시작 값: 5,244.03 (가격 결정일 EURO STOXX 50 종가).
- 만기 평가 기간: 2026년 8월 19~25일 (관찰일 5일).
- 계산 대리인: BofA Securities.
- 2차 시장은 제한적이거나 없으며, 노트는 어떤 거래소에도 상장되지 않습니다.
주요 위험 요소: 전면적 하락 위험, 상한 수익, 유동성 부족, 공모가 이하 평가, 헤지/계산 관련 이해 상충, 미국 세금 처리 불확실성, 유로존 시장 및 통화 요인 노출, RBC 신용도에 전적으로 의존.
La Royal Bank of Canada (RY) propose des Notes à Rendement Accéléré (ARN) pour un montant de 48,99 millions de dollars US, liées à l'indice EURO STOXX 50. L'émission comprend 4 898 973 unités d'une valeur nominale de 10 dollars chacune, avec un prix fixé au 26 juin 2025, règlement le 3 juillet 2025 et échéance le 28 août 2026 (environ 14 mois).
Profil de paiement :
- Participation à 300 % à toute performance positive de l'indice, avec un remboursement maximum de 11,942 $ par unité (plafond de 19,42 %).
- Exposition à la baisse au pair : les investisseurs perdent le capital proportionnellement à toute baisse de l'EURO STOXX 50 ; perte totale possible.
- Pas de coupons ou dividendes intermédiaires ; le paiement intervient uniquement à l'échéance.
Les notes sont des obligations senior non garanties de RBC. Tous les montants sont soumis au risque de crédit de RBC et ne sont pas couverts par la FDIC, la CDIC ou d'autres régimes d'assurance.
Économie du prix : Le prix d'offre publique est de 10,00 $, mais la valeur estimée initiale est de 9,72 $, reflétant (i) un taux de financement interne plus bas de RBC, (ii) une décote de souscription de 0,175 $ et (iii) une charge liée à la couverture de 0,05 $. Le produit net pour RBC, avant frais, est de 9,825 $ par unité (48,13 millions de dollars au total).
Principaux termes :
- Valeur de départ : 5 244,03 (clôture de l'EURO STOXX 50 à la date de tarification).
- Période d'évaluation à l'échéance : du 19 au 25 août 2026 (5 jours d'observation).
- Agent de calcul : BofA Securities.
- Marché secondaire limité ou inexistant ; les notes ne seront cotées sur aucune bourse.
Risques principaux soulignés : risque total à la baisse, plafond de rendement, illiquidité, valorisation inférieure au prix d'offre, conflits d'intérêts dans la couverture/le calcul, traitement fiscal américain incertain, exposition aux facteurs de marché et de change de la zone euro, et dépendance totale à la solvabilité de RBC.
Die Royal Bank of Canada (RY) bietet beschleunigte Renditenoten (ARNs) im Wert von 48,99 Mio. US-Dollar an, die an den EURO STOXX 50 Index gekoppelt sind. Die Emission umfasst 4.898.973 Einheiten mit einem Nennwert von jeweils 10 US-Dollar, Preisfestsetzung am 26. Juni 2025, Abwicklung am 3. Juli 2025 und Fälligkeit am 28. August 2026 (ca. 14 Monate).
Auszahlungsprofil:
- 300% Partizipation an jeder positiven Indexentwicklung, mit einer maximalen Rückzahlung von 11,942 US-Dollar pro Einheit (19,42% Obergrenze).
- 1-zu-1 Abwärtsrisiko: Anleger verlieren Kapital proportional zu einem Rückgang des EURO STOXX 50; Totalverlust möglich.
- Keine Zwischenkupons oder Dividenden; Zahlung erfolgt nur bei Fälligkeit.
Die Notes sind unbesicherte Seniorverbindlichkeiten von RBC. Alle Beträge unterliegen dem Kreditrisiko von RBC und sind nicht durch FDIC, CDIC oder andere Versicherungssysteme geschützt.
Preisgestaltung: Der öffentliche Angebotspreis beträgt 10,00 US-Dollar, der anfängliche geschätzte Wert liegt jedoch bei 9,72 US-Dollar, was (i) eine niedrigere interne Finanzierungsrate von RBC, (ii) einen Underwriting-Rabatt von 0,175 US-Dollar und (iii) eine Absicherungskosten von 0,05 US-Dollar widerspiegelt. Der Nettoerlös für RBC vor Kosten beträgt 9,825 US-Dollar pro Einheit (insgesamt 48,13 Mio. US-Dollar).
Wesentliche Bedingungen:
- Startwert: 5.244,03 (Schlusskurs EURO STOXX 50 am Preisfestsetzungstag).
- Bewertungszeitraum bei Fälligkeit: 19.–25. August 2026 (5 Beobachtungstage).
- Berechnungsstelle: BofA Securities.
- Begrenzter oder kein Sekundärmarkt; die Notes werden an keiner Börse notiert.
Hervorgehobene Hauptrisiken: volles Abwärtsrisiko, begrenzte Aufwärtsrendite, Illiquidität, Bewertung unter dem Angebotspreis, Interessenkonflikte bei Absicherung/Berechnung, unsichere US-Steuerbehandlung, Exponierung gegenüber Eurozonenmarkt und Währungsfaktoren sowie vollständige Abhängigkeit von der Kreditwürdigkeit von RBC.
- None.
- None.
Insights
TL;DR Routine structured-note deal: 3x leverage with 19.4% cap, full downside, modest size, neutral credit impact for RBC.
The ARNs follow common market-linked note design: leveraged upside to a major equity index with a hard cap and no principal protection. The $48.1 million net proceeds are immaterial to RBC’s balance sheet, so the transaction is credit-neutral. For investors, economics are typical: a 28 bp fee load (underwriting + hedge cost) pushes the initial value to 97.2% of par. Limited liquidity and sub-par theoretical value mean secondary prices are likely to trade at a discount. Risk disclosure comprehensively warns of full principal loss potential and valuation uncertainties. Overall, the filing signals no strategic shift—simply ongoing structured-product funding activity.
TL;DR Product offers capped 19.4% upside vs unlimited downside—risk/reward skew favors issuer, not buy-and-hold investors.
From an allocation standpoint these ARNs are a tactical play on a mild Eurozone equity rally by August 2026. Investors sacrifice dividends and face 100% downside for at most ~19% upside—an unattractive asymmetric profile unless one forecasts a modest, low-volatility rise. The lack of secondary liquidity limits active management. Given the uncertain macro backdrop in Europe and RBC’s strong investment-grade status, the dominant risk is market, not credit. I view the product as non-impactful for diversified portfolios and would classify it as an alternative trade rather than a core holding.
Royal Bank of Canada (RY) offre note di rendimento accelerato (ARN) per un valore totale di 48,99 milioni di dollari USA, legate all'indice EURO STOXX 50. L'emissione comprende 4.898.973 unità con un valore nominale di 10 dollari ciascuna, con prezzo fissato al 26 giugno 2025, regolamento il 3 luglio 2025 e scadenza il 28 agosto 2026 (circa 14 mesi).
Profilo di rendimento:
- Partecipazione al 300% in qualsiasi performance positiva dell'indice, con un rimborso massimo di 11,942 dollari per unità (limite del 19,42%).
- Esposizione 1 a 1 al ribasso: gli investitori perdono il capitale in proporzione a qualsiasi calo dell'indice EURO STOXX 50; è possibile la perdita totale.
- Non sono previsti coupon o dividendi intermedi; il pagamento avviene solo alla scadenza.
Le note sono obbligazioni senior non garantite di RBC. Tutti gli importi sono soggetti al rischio di credito di RBC e non sono coperti da FDIC, CDIC o altre assicurazioni.
Economia del prezzo: Il prezzo di offerta pubblica è 10,00 dollari, ma il valore stimato iniziale è 9,72 dollari, riflettendo (i) un tasso di finanziamento interno più basso di RBC, (ii) uno sconto di sottoscrizione di 0,175 dollari e (iii) un costo di copertura di 0,05 dollari. Il ricavo netto per RBC, prima delle spese, è di 9,825 dollari per unità (48,13 milioni di dollari in totale).
Termini chiave:
- Valore iniziale: 5.244,03 (chiusura EURO STOXX 50 alla data di prezzo).
- Periodo di valutazione a scadenza: 19-25 agosto 2026 (5 giorni di osservazione).
- Agente di calcolo: BofA Securities.
- Mercato secondario limitato o assente; le note non saranno quotate in alcuna borsa.
Principali rischi evidenziati: rischio totale al ribasso, rendimento massimo limitato, illiquidità, valutazione inferiore al prezzo di offerta, conflitti di interesse nella copertura/calcolo, trattamento fiscale USA incerto, esposizione ai fattori di mercato e valuta dell'Eurozona e completa dipendenza dalla solvibilità di RBC.
Royal Bank of Canada (RY) ofrece Notas de Retorno Acelerado (ARN) por valor de 48,99 millones de dólares estadounidenses, vinculadas al índice EURO STOXX 50. La emisión consta de 4.898.973 unidades con un valor nominal de 10 dólares cada una, con precio fijado el 26 de junio de 2025, liquidación el 3 de julio de 2025 y vencimiento el 28 de agosto de 2026 (aproximadamente 14 meses).
Perfil de pago:
- Participación del 300% en cualquier rendimiento positivo del índice, con un reembolso máximo de 11,942 dólares por unidad (tope del 19,42%).
- Exposición a la baja 1 a 1: los inversores pierden el principal en proporción a cualquier caída del índice EURO STOXX 50; pérdida total posible.
- No hay cupones o dividendos intermedios; el pago se realiza solo al vencimiento.
Las notas son obligaciones senior no garantizadas de RBC. Todos los montos están sujetos al riesgo crediticio de RBC y no están cubiertos por FDIC, CDIC u otros seguros.
Economía del precio: El precio de oferta pública es de 10,00 dólares, pero el valor estimado inicial es de 9,72 dólares, reflejando (i) una tasa interna de financiamiento más baja de RBC, (ii) un descuento de suscripción de 0,175 dólares y (iii) un coste relacionado con cobertura de 0,05 dólares. Los ingresos netos para RBC, antes de gastos, son de 9,825 dólares por unidad (48,13 millones de dólares en total).
Términos clave:
- Valor inicial: 5.244,03 (cierre del EURO STOXX 50 en la fecha de precio).
- Período de valoración al vencimiento: 19-25 de agosto de 2026 (5 días de observación).
- Agente de cálculo: BofA Securities.
- Mercado secundario limitado o inexistente; las notas no se cotizarán en ninguna bolsa.
Riesgos principales destacados: riesgo total a la baja, techo en el rendimiento, iliquidez, valoración por debajo del precio de oferta, conflictos de interés en cobertura/cálculo, tratamiento fiscal estadounidense incierto, exposición a factores de mercado y moneda de la Eurozona y dependencia total de la solvencia de RBC.
로열 뱅크 오브 캐나다(RY)는 EURO STOXX 50 지수에 연동된 가속 수익 노트(ARN)를 미화 4,899만 달러 규모로 제공합니다. 이번 발행은 각 단위당 액면가 10달러인 4,898,973 단위로 구성되며, 2025년 6월 26일 가격 결정, 2025년 7월 3일 결제, 2026년 8월 28일 만기(약 14개월)입니다.
수익 구조:
- 지수 상승 시 300% 참여, 단위당 최대 상환금액은 11.942달러로 제한(19.42% 상한).
- 1대1 하락 노출: 투자자는 EURO STOXX 50 지수 하락에 비례하여 원금 손실 가능, 전액 손실 가능성 있음.
- 중간 쿠폰이나 배당금 없음; 지급은 만기 시에만 이루어짐.
이 노트는 RBC의 선순위 무담보 채무입니다. 모든 금액은 RBC의 신용 위험에 노출되며 FDIC, CDIC 또는 기타 보험 제도의 보호를 받지 않습니다.
가격 구조: 공모가는 10.00달러이나, 초기 예상 가치는 9.72달러로, (i) RBC의 낮은 내부 자금 조달 비용, (ii) 0.175달러의 인수 할인, (iii) 0.05달러의 헤지 관련 비용을 반영합니다. 수수료 제외 순수익은 단위당 9.825달러(총 4,813만 달러)입니다.
주요 조건:
- 시작 값: 5,244.03 (가격 결정일 EURO STOXX 50 종가).
- 만기 평가 기간: 2026년 8월 19~25일 (관찰일 5일).
- 계산 대리인: BofA Securities.
- 2차 시장은 제한적이거나 없으며, 노트는 어떤 거래소에도 상장되지 않습니다.
주요 위험 요소: 전면적 하락 위험, 상한 수익, 유동성 부족, 공모가 이하 평가, 헤지/계산 관련 이해 상충, 미국 세금 처리 불확실성, 유로존 시장 및 통화 요인 노출, RBC 신용도에 전적으로 의존.
La Royal Bank of Canada (RY) propose des Notes à Rendement Accéléré (ARN) pour un montant de 48,99 millions de dollars US, liées à l'indice EURO STOXX 50. L'émission comprend 4 898 973 unités d'une valeur nominale de 10 dollars chacune, avec un prix fixé au 26 juin 2025, règlement le 3 juillet 2025 et échéance le 28 août 2026 (environ 14 mois).
Profil de paiement :
- Participation à 300 % à toute performance positive de l'indice, avec un remboursement maximum de 11,942 $ par unité (plafond de 19,42 %).
- Exposition à la baisse au pair : les investisseurs perdent le capital proportionnellement à toute baisse de l'EURO STOXX 50 ; perte totale possible.
- Pas de coupons ou dividendes intermédiaires ; le paiement intervient uniquement à l'échéance.
Les notes sont des obligations senior non garanties de RBC. Tous les montants sont soumis au risque de crédit de RBC et ne sont pas couverts par la FDIC, la CDIC ou d'autres régimes d'assurance.
Économie du prix : Le prix d'offre publique est de 10,00 $, mais la valeur estimée initiale est de 9,72 $, reflétant (i) un taux de financement interne plus bas de RBC, (ii) une décote de souscription de 0,175 $ et (iii) une charge liée à la couverture de 0,05 $. Le produit net pour RBC, avant frais, est de 9,825 $ par unité (48,13 millions de dollars au total).
Principaux termes :
- Valeur de départ : 5 244,03 (clôture de l'EURO STOXX 50 à la date de tarification).
- Période d'évaluation à l'échéance : du 19 au 25 août 2026 (5 jours d'observation).
- Agent de calcul : BofA Securities.
- Marché secondaire limité ou inexistant ; les notes ne seront cotées sur aucune bourse.
Risques principaux soulignés : risque total à la baisse, plafond de rendement, illiquidité, valorisation inférieure au prix d'offre, conflits d'intérêts dans la couverture/le calcul, traitement fiscal américain incertain, exposition aux facteurs de marché et de change de la zone euro, et dépendance totale à la solvabilité de RBC.
Die Royal Bank of Canada (RY) bietet beschleunigte Renditenoten (ARNs) im Wert von 48,99 Mio. US-Dollar an, die an den EURO STOXX 50 Index gekoppelt sind. Die Emission umfasst 4.898.973 Einheiten mit einem Nennwert von jeweils 10 US-Dollar, Preisfestsetzung am 26. Juni 2025, Abwicklung am 3. Juli 2025 und Fälligkeit am 28. August 2026 (ca. 14 Monate).
Auszahlungsprofil:
- 300% Partizipation an jeder positiven Indexentwicklung, mit einer maximalen Rückzahlung von 11,942 US-Dollar pro Einheit (19,42% Obergrenze).
- 1-zu-1 Abwärtsrisiko: Anleger verlieren Kapital proportional zu einem Rückgang des EURO STOXX 50; Totalverlust möglich.
- Keine Zwischenkupons oder Dividenden; Zahlung erfolgt nur bei Fälligkeit.
Die Notes sind unbesicherte Seniorverbindlichkeiten von RBC. Alle Beträge unterliegen dem Kreditrisiko von RBC und sind nicht durch FDIC, CDIC oder andere Versicherungssysteme geschützt.
Preisgestaltung: Der öffentliche Angebotspreis beträgt 10,00 US-Dollar, der anfängliche geschätzte Wert liegt jedoch bei 9,72 US-Dollar, was (i) eine niedrigere interne Finanzierungsrate von RBC, (ii) einen Underwriting-Rabatt von 0,175 US-Dollar und (iii) eine Absicherungskosten von 0,05 US-Dollar widerspiegelt. Der Nettoerlös für RBC vor Kosten beträgt 9,825 US-Dollar pro Einheit (insgesamt 48,13 Mio. US-Dollar).
Wesentliche Bedingungen:
- Startwert: 5.244,03 (Schlusskurs EURO STOXX 50 am Preisfestsetzungstag).
- Bewertungszeitraum bei Fälligkeit: 19.–25. August 2026 (5 Beobachtungstage).
- Berechnungsstelle: BofA Securities.
- Begrenzter oder kein Sekundärmarkt; die Notes werden an keiner Börse notiert.
Hervorgehobene Hauptrisiken: volles Abwärtsrisiko, begrenzte Aufwärtsrendite, Illiquidität, Bewertung unter dem Angebotspreis, Interessenkonflikte bei Absicherung/Berechnung, unsichere US-Steuerbehandlung, Exponierung gegenüber Eurozonenmarkt und Währungsfaktoren sowie vollständige Abhängigkeit von der Kreditwürdigkeit von RBC.
Free Writing Prospectus to Preliminary Pricing Supplement No. 9,112
Registration Statement Nos. 333-275587; 333-275587-01
Dated July 1, 2025; Filed pursuant to Rule 433
Morgan Stanley
Worst-of SPX, NDX and RTY Trigger Jump Securities due August 5, 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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Underliers: |
S&P 500® Index (SPX), Nasdaq-100 Index® (NDX) and Russell 2000® Index (RTY) |
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Upside payment: |
$625 to $675 per security (62.50% to 67.50% of the stated principal amount) |
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Downside threshold level: |
75% of the initial level for each underlier |
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Pricing date: |
July 31, 2025 |
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Observation date: |
July 31, 2030 |
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Maturity date: |
August 5, 2030 |
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CUSIP: |
61778NDC2 |
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Estimated value: |
$947.80 per security, or within $55.00 of that estimate |
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Preliminary pricing supplement: |
https://www.sec.gov/Archives/edgar/data/895421/000183988225035580/ms9112_424b2-19458.htm |
1All payments are subject to our credit risk
Hypothetical Payment at Maturity1
The payment at maturity will be based solely on the performance of the worst performing underlier, which could be any underlier. The payoff diagram and table below illustrate the payment at maturity for a range of hypothetical performances of the worst performing underlier over the term of the securities.
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% Change in Closing Level of the Worst Performing Underlier |
Payment at Maturity per Security |
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+100.00% |
$2,000.00 |
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+80.00% |
$1,800.00 |
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+62.50% |
$1,625.00 |
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+60.00% |
$1,625.00* |
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+40.00% |
$1,625.00* |
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+20.00% |
$1,625.00* |
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0.00% |
$1,625.00* |
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-20.00% |
$1,000.00 |
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-25.00% |
$1,000.00 |
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-26.00% |
$740.00 |
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-40.00% |
$600.00 |
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-60.00% |
$400.00 |
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-80.00% |
$200.00 |
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-100.00% |
$0.00 |
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*Assumes an upside payment of $625 per security |
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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 do not guarantee the return of any principal and do not pay interest.
●The amount payable on the securities is not linked to the values of the underliers 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.
oYou are exposed to the price risk of each underlier.
oBecause the securities are linked to the performance of the worst performing underlier, you are exposed to a greater risk of not receiving a positive return on the securities and/or sustaining a significant loss on your investment than if the securities were linked to just one underlier.
oAdjustments to an underlying index could adversely affect the value of the securities.
●The securities are subject to risks associated with small-capitalization companies.
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 CUSIP and size of RBC’s new Accelerated Return Notes (RY)?
How much upside do investors receive on the EURO STOXX 50 with these notes?
What happens if the EURO STOXX 50 declines during the term?
Why is the initial estimated value ($9.72) lower than the $10 offer price?
Are the notes insured or principal-protected by RBC or regulators?
When do the notes mature and how is the Ending Value calculated?
