[FWP] Morgan Stanley Free Writing Prospectus
Canadian Imperial Bank of Commerce (CM) is offering US$26.85 million of Accelerated Return Notes (ARNs) linked to the iShares U.S. Aerospace & Defense ETF (ITA). The notes are senior, unsecured obligations that expose holders to CIBC’s credit risk and the market performance of ITA over an approximately 14-month term (pricing date: June 26 2025; maturity: August 28 2026).
Key economic terms
- Principal: US$10 per unit; 2,684,947 units issued.
- Participation Rate: 300% of any positive price return.
- Capped Value: US$11.29 per unit, limiting maximum gain to 12.90%.
- Downside: 1-to-1 exposure; investors can lose up to 100% of principal if ITA declines.
- Initial estimated value: US$9.655 (≈3.45% below issue price) due to underwriting discount (US$0.175) and hedging cost (US$0.05).
- No periodic coupons, no early redemption, and no exchange listing; liquidity will be limited to dealer bid-offer.
Risk highlights
- Full downside exposure and capped upside create an unfavorable risk-reward profile compared with direct ETF ownership.
- Credit risk of CIBC: any payment depends on the bank’s ability to meet its obligations.
- Valuation friction: internal funding rate and hedging costs depress fair value; secondary prices likely below issue price.
- Sector concentration: ITA’s top three holdings equal 44.03% of fund weight, heightening single-stock impact.
Investor profile: Suitable only for investors who 1) expect a modest rise in ITA, 2) can tolerate full principal loss, 3) do not need income or dividends, and 4) accept limited liquidity.
La Canadian Imperial Bank of Commerce (CM) offre note di rendimento accelerato (ARN) per un valore di 26,85 milioni di dollari USA, collegate all'ETF iShares U.S. Aerospace & Defense (ITA). Le note sono obbligazioni senior non garantite che espongono i detentori al rischio di credito di CIBC e alla performance di mercato dell'ITA per un periodo di circa 14 mesi (data di prezzo: 26 giugno 2025; scadenza: 28 agosto 2026).
Termini economici principali
- Capitale: 10 dollari USA per unità; 2.684.947 unità emesse.
- Percentuale di partecipazione: 300% di qualsiasi rendimento positivo del prezzo.
- Valore massimo: 11,29 dollari USA per unità, limitando il guadagno massimo al 12,90%.
- Rischio al ribasso: esposizione 1 a 1; gli investitori possono perdere fino al 100% del capitale se l'ITA scende.
- Valore stimato iniziale: 9,655 dollari USA (circa 3,45% sotto il prezzo di emissione) a causa dello sconto di sottoscrizione (0,175 dollari) e dei costi di copertura (0,05 dollari).
- Nessun coupon periodico, nessun rimborso anticipato e nessuna quotazione in borsa; la liquidità sarà limitata alle offerte di acquisto/vendita dei dealer.
Punti salienti del rischio
- Esposizione totale al ribasso e guadagno massimo limitato creano un profilo rischio-rendimento sfavorevole rispetto al possesso diretto dell'ETF.
- Rischio di credito di CIBC: ogni pagamento dipende dalla capacità della banca di adempiere ai propri obblighi.
- Attrito nella valutazione: il tasso di finanziamento interno e i costi di copertura riducono il valore equo; i prezzi secondari probabilmente saranno inferiori al prezzo di emissione.
- Concentrazione settoriale: le prime tre partecipazioni di ITA rappresentano il 44,03% del peso del fondo, aumentando l'impatto delle singole azioni.
Profilo dell'investitore: Adatto solo a investitori che 1) prevedono un modesto aumento di ITA, 2) possono tollerare la perdita totale del capitale, 3) non necessitano di reddito o dividendi, e 4) accettano una liquidità limitata.
Canadian Imperial Bank of Commerce (CM) ofrece Notas de Retorno Acelerado (ARN) por un valor de 26,85 millones de dólares estadounidenses, vinculadas al ETF iShares U.S. Aerospace & Defense (ITA). Las notas son obligaciones senior no garantizadas que exponen a los tenedores al riesgo crediticio de CIBC y al desempeño del mercado de ITA durante un plazo aproximado de 14 meses (fecha de precio: 26 de junio de 2025; vencimiento: 28 de agosto de 2026).
Términos económicos clave
- Principal: 10 dólares estadounidenses por unidad; 2.684.947 unidades emitidas.
- Tasa de participación: 300% de cualquier retorno positivo del precio.
- Valor máximo: 11,29 dólares estadounidenses por unidad, limitando la ganancia máxima al 12,90%.
- Riesgo a la baja: exposición 1 a 1; los inversores pueden perder hasta el 100% del principal si ITA disminuye.
- Valor estimado inicial: 9,655 dólares estadounidenses (≈3,45% por debajo del precio de emisión) debido al descuento de suscripción (0,175 dólares) y costo de cobertura (0,05 dólares).
- No hay cupones periódicos, ni redención anticipada ni cotización en bolsa; la liquidez estará limitada a las ofertas de compra y venta de los distribuidores.
Puntos destacados de riesgo
- Exposición total a la baja y ganancia máxima limitada crean un perfil riesgo-recompensa desfavorable en comparación con la propiedad directa del ETF.
- Riesgo crediticio de CIBC: cualquier pago depende de la capacidad del banco para cumplir con sus obligaciones.
- Fricción en la valoración: la tasa interna de financiamiento y los costos de cobertura reducen el valor justo; los precios secundarios probablemente estarán por debajo del precio de emisión.
- Concentración sectorial: las tres principales participaciones de ITA representan el 44,03% del peso del fondo, aumentando el impacto de acciones individuales.
Perfil del inversor: Adecuado solo para inversores que 1) esperan un modesto aumento en ITA, 2) pueden tolerar la pérdida total del principal, 3) no necesitan ingresos ni dividendos, y 4) aceptan liquidez limitada.
캐나다 임페리얼 뱅크 오브 커머스(CIBC, CM)는 iShares 미국 항공우주 및 방위 ETF(ITA)에 연동된 2,685만 달러 규모의 가속 수익 노트(ARN)를 제공합니다. 이 노트는 선순위 무담보 채무로서 보유자는 CIBC의 신용 위험과 약 14개월 기간 동안 ITA의 시장 성과에 노출됩니다(가격 산정일: 2025년 6월 26일; 만기: 2026년 8월 28일).
주요 경제 조건
- 원금: 단위당 10달러; 2,684,947 단위 발행.
- 참여율: 긍정적 가격 수익의 300%.
- 상한 가치: 단위당 11.29달러로 최대 수익률 12.90% 제한.
- 하방 위험: 1대1 노출; ITA가 하락할 경우 투자자는 원금 전액 손실 가능.
- 초기 추정 가치: 9.655달러(발행가 대비 약 3.45% 낮음), 인수 할인(0.175달러) 및 헤징 비용(0.05달러) 반영.
- 정기 쿠폰 없음, 조기 상환 불가, 거래소 상장 없음; 유동성은 딜러 매수-매도 호가에 제한.
위험 요약
- 전면적인 하방 노출과 상한 수익률은 직접 ETF 보유 대비 불리한 위험-보상 프로필 형성.
- CIBC 신용 위험: 지급은 은행의 채무 이행 능력에 달려 있음.
- 평가 마찰: 내부 자금 조달 비용 및 헤징 비용으로 공정 가치 하락; 2차 시장 가격은 발행가 이하일 가능성 높음.
- 섹터 집중도: ITA 상위 3개 보유 종목이 펀드 비중의 44.03% 차지, 개별 종목 영향력 증가.
투자자 프로필: 1) ITA의 완만한 상승을 기대하고, 2) 원금 전액 손실을 감내할 수 있으며, 3) 수입이나 배당이 필요 없고, 4) 제한된 유동성을 수용하는 투자자에게 적합합니다.
La Canadian Imperial Bank of Commerce (CM) propose des Notes à Rendement Accéléré (ARN) d'une valeur de 26,85 millions de dollars américains, liées à l'ETF iShares U.S. Aerospace & Defense (ITA). Ces notes sont des obligations senior non garanties exposant les détenteurs au risque de crédit de CIBC ainsi qu'à la performance du marché d'ITA sur une période d'environ 14 mois (date de tarification : 26 juin 2025 ; échéance : 28 août 2026).
Principaux termes économiques
- Capital : 10 USD par unité ; 2 684 947 unités émises.
- Taux de participation : 300 % de tout rendement positif du prix.
- Valeur plafonnée : 11,29 USD par unité, limitant le gain maximal à 12,90 %.
- Risque à la baisse : exposition 1 pour 1 ; les investisseurs peuvent perdre jusqu'à 100 % du capital si ITA baisse.
- Valeur estimée initiale : 9,655 USD (≈3,45 % en dessous du prix d'émission) en raison de la décote de souscription (0,175 USD) et des coûts de couverture (0,05 USD).
- Pas de coupons périodiques, pas de remboursement anticipé et pas de cotation en bourse ; la liquidité sera limitée aux offres d’achat et de vente des teneurs de marché.
Points clés de risque
- Exposition totale à la baisse et gain plafonné créent un profil risque-rendement défavorable comparé à la détention directe de l’ETF.
- Risque de crédit de CIBC : tout paiement dépend de la capacité de la banque à honorer ses engagements.
- Friction de valorisation : le taux de financement interne et les coûts de couverture déprécient la juste valeur ; les prix secondaires seront probablement inférieurs au prix d’émission.
- Concentration sectorielle : les trois principales positions d’ITA représentent 44,03 % du poids du fonds, augmentant l’impact des actions individuelles.
Profil de l’investisseur : Convient uniquement aux investisseurs qui 1) anticipent une légère hausse d’ITA, 2) peuvent tolérer une perte totale du capital, 3) n’ont pas besoin de revenus ou de dividendes, et 4) acceptent une liquidité limitée.
Die Canadian Imperial Bank of Commerce (CM) bietet Accelerated Return Notes (ARNs) im Wert von 26,85 Millionen US-Dollar an, die an den iShares U.S. Aerospace & Defense ETF (ITA) gekoppelt sind. Die Notes sind vorrangige, unbesicherte Verbindlichkeiten, die die Inhaber dem Kreditrisiko von CIBC und der Marktentwicklung von ITA über eine Laufzeit von etwa 14 Monaten aussetzen (Preisfeststellung: 26. Juni 2025; Fälligkeit: 28. August 2026).
Wesentliche wirtschaftliche Bedingungen
- Nennwert: 10 US-Dollar pro Einheit; 2.684.947 Einheiten ausgegeben.
- Teilnahmerate: 300% jeglicher positiver Kursrendite.
- Begrenzter Wert: 11,29 US-Dollar pro Einheit, maximale Gewinnbegrenzung auf 12,90%.
- Abwärtsrisiko: 1:1-Exposition; Anleger können bis zu 100% des Kapitals verlieren, wenn ITA fällt.
- Geschätzter Anfangswert: 9,655 US-Dollar (ca. 3,45% unter dem Ausgabepreis) aufgrund von Zeichnungsabschlag (0,175 US-Dollar) und Absicherungskosten (0,05 US-Dollar).
- Keine periodischen Coupons, keine vorzeitige Rückzahlung und keine Börsennotierung; Liquidität beschränkt sich auf Händler-Kauf- und Verkaufsangebote.
Risikohighlights
- Volle Abwärtsrisiko-Exposition und begrenzter Aufwärtsspielraum führen zu einem ungünstigen Risiko-Rendite-Profil im Vergleich zum direkten Besitz des ETFs.
- Kreditrisiko von CIBC: Zahlungen hängen von der Fähigkeit der Bank ab, ihren Verpflichtungen nachzukommen.
- Bewertungshemmnisse: interne Finanzierungskosten und Absicherungskosten drücken den fairen Wert; Sekundärpreise liegen wahrscheinlich unter dem Ausgabepreis.
- Sektorkonzentration: Die drei größten Positionen von ITA machen 44,03% des Fondsgewichts aus, was die Einzelaktienwirkung verstärkt.
Investorprofil: Geeignet nur für Anleger, die 1) einen moderaten Anstieg von ITA erwarten, 2) einen vollständigen Kapitalverlust tolerieren können, 3) keine Einkünfte oder Dividenden benötigen und 4) eine begrenzte Liquidität akzeptieren.
- None.
- None.
Insights
TL;DR: Small, routine structured-note issuance; marginal revenue for CIBC, high embedded costs and full downside for buyers.
The US$26.9 million ARN deal is immaterial to CIBC’s balance sheet but generates fee and hedging income (≈US$0.225 per unit combined). For investors, the 12.90% cap versus unlimited downside creates an asymmetric payoff that favors the issuer, particularly given the 14-month term. The initial value discount and expected wide bid-ask spread mean early exits will likely crystallize losses. From a credit perspective, adding <1 bp to CIBC’s wholesale funding is neutral. Overall market impact: negligible.
TL;DR: Product transfers ETF downside to retail buyers; liquidity and credit risks are significant.
The structure embeds 300% leverage but caps gains at 12.90%, effectively selling a series of call spreads to investors while CIBC hedges dynamically. Because ITA is concentrated in aerospace & defense names and sensitive to U.S. defense outlays, volatility spikes could hurt note values well before maturity. Investors also face dealer mark-downs in any secondary sale. Tax treatment is uncertain (pre-paid derivative), and withholding on dividend equivalents begins 2027, slightly outside maturity. Net impact: elevated risk, limited reward.
La Canadian Imperial Bank of Commerce (CM) offre note di rendimento accelerato (ARN) per un valore di 26,85 milioni di dollari USA, collegate all'ETF iShares U.S. Aerospace & Defense (ITA). Le note sono obbligazioni senior non garantite che espongono i detentori al rischio di credito di CIBC e alla performance di mercato dell'ITA per un periodo di circa 14 mesi (data di prezzo: 26 giugno 2025; scadenza: 28 agosto 2026).
Termini economici principali
- Capitale: 10 dollari USA per unità; 2.684.947 unità emesse.
- Percentuale di partecipazione: 300% di qualsiasi rendimento positivo del prezzo.
- Valore massimo: 11,29 dollari USA per unità, limitando il guadagno massimo al 12,90%.
- Rischio al ribasso: esposizione 1 a 1; gli investitori possono perdere fino al 100% del capitale se l'ITA scende.
- Valore stimato iniziale: 9,655 dollari USA (circa 3,45% sotto il prezzo di emissione) a causa dello sconto di sottoscrizione (0,175 dollari) e dei costi di copertura (0,05 dollari).
- Nessun coupon periodico, nessun rimborso anticipato e nessuna quotazione in borsa; la liquidità sarà limitata alle offerte di acquisto/vendita dei dealer.
Punti salienti del rischio
- Esposizione totale al ribasso e guadagno massimo limitato creano un profilo rischio-rendimento sfavorevole rispetto al possesso diretto dell'ETF.
- Rischio di credito di CIBC: ogni pagamento dipende dalla capacità della banca di adempiere ai propri obblighi.
- Attrito nella valutazione: il tasso di finanziamento interno e i costi di copertura riducono il valore equo; i prezzi secondari probabilmente saranno inferiori al prezzo di emissione.
- Concentrazione settoriale: le prime tre partecipazioni di ITA rappresentano il 44,03% del peso del fondo, aumentando l'impatto delle singole azioni.
Profilo dell'investitore: Adatto solo a investitori che 1) prevedono un modesto aumento di ITA, 2) possono tollerare la perdita totale del capitale, 3) non necessitano di reddito o dividendi, e 4) accettano una liquidità limitata.
Canadian Imperial Bank of Commerce (CM) ofrece Notas de Retorno Acelerado (ARN) por un valor de 26,85 millones de dólares estadounidenses, vinculadas al ETF iShares U.S. Aerospace & Defense (ITA). Las notas son obligaciones senior no garantizadas que exponen a los tenedores al riesgo crediticio de CIBC y al desempeño del mercado de ITA durante un plazo aproximado de 14 meses (fecha de precio: 26 de junio de 2025; vencimiento: 28 de agosto de 2026).
Términos económicos clave
- Principal: 10 dólares estadounidenses por unidad; 2.684.947 unidades emitidas.
- Tasa de participación: 300% de cualquier retorno positivo del precio.
- Valor máximo: 11,29 dólares estadounidenses por unidad, limitando la ganancia máxima al 12,90%.
- Riesgo a la baja: exposición 1 a 1; los inversores pueden perder hasta el 100% del principal si ITA disminuye.
- Valor estimado inicial: 9,655 dólares estadounidenses (≈3,45% por debajo del precio de emisión) debido al descuento de suscripción (0,175 dólares) y costo de cobertura (0,05 dólares).
- No hay cupones periódicos, ni redención anticipada ni cotización en bolsa; la liquidez estará limitada a las ofertas de compra y venta de los distribuidores.
Puntos destacados de riesgo
- Exposición total a la baja y ganancia máxima limitada crean un perfil riesgo-recompensa desfavorable en comparación con la propiedad directa del ETF.
- Riesgo crediticio de CIBC: cualquier pago depende de la capacidad del banco para cumplir con sus obligaciones.
- Fricción en la valoración: la tasa interna de financiamiento y los costos de cobertura reducen el valor justo; los precios secundarios probablemente estarán por debajo del precio de emisión.
- Concentración sectorial: las tres principales participaciones de ITA representan el 44,03% del peso del fondo, aumentando el impacto de acciones individuales.
Perfil del inversor: Adecuado solo para inversores que 1) esperan un modesto aumento en ITA, 2) pueden tolerar la pérdida total del principal, 3) no necesitan ingresos ni dividendos, y 4) aceptan liquidez limitada.
캐나다 임페리얼 뱅크 오브 커머스(CIBC, CM)는 iShares 미국 항공우주 및 방위 ETF(ITA)에 연동된 2,685만 달러 규모의 가속 수익 노트(ARN)를 제공합니다. 이 노트는 선순위 무담보 채무로서 보유자는 CIBC의 신용 위험과 약 14개월 기간 동안 ITA의 시장 성과에 노출됩니다(가격 산정일: 2025년 6월 26일; 만기: 2026년 8월 28일).
주요 경제 조건
- 원금: 단위당 10달러; 2,684,947 단위 발행.
- 참여율: 긍정적 가격 수익의 300%.
- 상한 가치: 단위당 11.29달러로 최대 수익률 12.90% 제한.
- 하방 위험: 1대1 노출; ITA가 하락할 경우 투자자는 원금 전액 손실 가능.
- 초기 추정 가치: 9.655달러(발행가 대비 약 3.45% 낮음), 인수 할인(0.175달러) 및 헤징 비용(0.05달러) 반영.
- 정기 쿠폰 없음, 조기 상환 불가, 거래소 상장 없음; 유동성은 딜러 매수-매도 호가에 제한.
위험 요약
- 전면적인 하방 노출과 상한 수익률은 직접 ETF 보유 대비 불리한 위험-보상 프로필 형성.
- CIBC 신용 위험: 지급은 은행의 채무 이행 능력에 달려 있음.
- 평가 마찰: 내부 자금 조달 비용 및 헤징 비용으로 공정 가치 하락; 2차 시장 가격은 발행가 이하일 가능성 높음.
- 섹터 집중도: ITA 상위 3개 보유 종목이 펀드 비중의 44.03% 차지, 개별 종목 영향력 증가.
투자자 프로필: 1) ITA의 완만한 상승을 기대하고, 2) 원금 전액 손실을 감내할 수 있으며, 3) 수입이나 배당이 필요 없고, 4) 제한된 유동성을 수용하는 투자자에게 적합합니다.
La Canadian Imperial Bank of Commerce (CM) propose des Notes à Rendement Accéléré (ARN) d'une valeur de 26,85 millions de dollars américains, liées à l'ETF iShares U.S. Aerospace & Defense (ITA). Ces notes sont des obligations senior non garanties exposant les détenteurs au risque de crédit de CIBC ainsi qu'à la performance du marché d'ITA sur une période d'environ 14 mois (date de tarification : 26 juin 2025 ; échéance : 28 août 2026).
Principaux termes économiques
- Capital : 10 USD par unité ; 2 684 947 unités émises.
- Taux de participation : 300 % de tout rendement positif du prix.
- Valeur plafonnée : 11,29 USD par unité, limitant le gain maximal à 12,90 %.
- Risque à la baisse : exposition 1 pour 1 ; les investisseurs peuvent perdre jusqu'à 100 % du capital si ITA baisse.
- Valeur estimée initiale : 9,655 USD (≈3,45 % en dessous du prix d'émission) en raison de la décote de souscription (0,175 USD) et des coûts de couverture (0,05 USD).
- Pas de coupons périodiques, pas de remboursement anticipé et pas de cotation en bourse ; la liquidité sera limitée aux offres d’achat et de vente des teneurs de marché.
Points clés de risque
- Exposition totale à la baisse et gain plafonné créent un profil risque-rendement défavorable comparé à la détention directe de l’ETF.
- Risque de crédit de CIBC : tout paiement dépend de la capacité de la banque à honorer ses engagements.
- Friction de valorisation : le taux de financement interne et les coûts de couverture déprécient la juste valeur ; les prix secondaires seront probablement inférieurs au prix d’émission.
- Concentration sectorielle : les trois principales positions d’ITA représentent 44,03 % du poids du fonds, augmentant l’impact des actions individuelles.
Profil de l’investisseur : Convient uniquement aux investisseurs qui 1) anticipent une légère hausse d’ITA, 2) peuvent tolérer une perte totale du capital, 3) n’ont pas besoin de revenus ou de dividendes, et 4) acceptent une liquidité limitée.
Die Canadian Imperial Bank of Commerce (CM) bietet Accelerated Return Notes (ARNs) im Wert von 26,85 Millionen US-Dollar an, die an den iShares U.S. Aerospace & Defense ETF (ITA) gekoppelt sind. Die Notes sind vorrangige, unbesicherte Verbindlichkeiten, die die Inhaber dem Kreditrisiko von CIBC und der Marktentwicklung von ITA über eine Laufzeit von etwa 14 Monaten aussetzen (Preisfeststellung: 26. Juni 2025; Fälligkeit: 28. August 2026).
Wesentliche wirtschaftliche Bedingungen
- Nennwert: 10 US-Dollar pro Einheit; 2.684.947 Einheiten ausgegeben.
- Teilnahmerate: 300% jeglicher positiver Kursrendite.
- Begrenzter Wert: 11,29 US-Dollar pro Einheit, maximale Gewinnbegrenzung auf 12,90%.
- Abwärtsrisiko: 1:1-Exposition; Anleger können bis zu 100% des Kapitals verlieren, wenn ITA fällt.
- Geschätzter Anfangswert: 9,655 US-Dollar (ca. 3,45% unter dem Ausgabepreis) aufgrund von Zeichnungsabschlag (0,175 US-Dollar) und Absicherungskosten (0,05 US-Dollar).
- Keine periodischen Coupons, keine vorzeitige Rückzahlung und keine Börsennotierung; Liquidität beschränkt sich auf Händler-Kauf- und Verkaufsangebote.
Risikohighlights
- Volle Abwärtsrisiko-Exposition und begrenzter Aufwärtsspielraum führen zu einem ungünstigen Risiko-Rendite-Profil im Vergleich zum direkten Besitz des ETFs.
- Kreditrisiko von CIBC: Zahlungen hängen von der Fähigkeit der Bank ab, ihren Verpflichtungen nachzukommen.
- Bewertungshemmnisse: interne Finanzierungskosten und Absicherungskosten drücken den fairen Wert; Sekundärpreise liegen wahrscheinlich unter dem Ausgabepreis.
- Sektorkonzentration: Die drei größten Positionen von ITA machen 44,03% des Fondsgewichts aus, was die Einzelaktienwirkung verstärkt.
Investorprofil: Geeignet nur für Anleger, die 1) einen moderaten Anstieg von ITA erwarten, 2) einen vollständigen Kapitalverlust tolerieren können, 3) keine Einkünfte oder Dividenden benötigen und 4) eine begrenzte Liquidität akzeptieren.
Free Writing Prospectus to Preliminary Pricing Supplement No. 9,118
Registration Statement Nos. 333-275587; 333-275587-01
Dated July 1, 2025; Filed pursuant to Rule 433
Morgan Stanley
SPXFP Trigger PLUS 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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Leverage factor: |
189% to 199% |
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Downside threshold level: |
75% of the initial level |
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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: |
61778NDH1 |
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Estimated value: |
$924.80 per security, or within $55.00 of that estimate |
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Preliminary pricing supplement: |
https://www.sec.gov/Archives/edgar/data/895421/000183988225035627/ms9118_424b2-19386.htm |
1All payments are subject to our credit risk
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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.
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% Change in Closing Level of the Underlier |
Payment at Maturity per Security |
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+60.00% |
$2,134.00* |
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+40.00% |
$1,756.00* |
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+20.00% |
$1,378.00* |
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0.00% |
$1,000.00 |
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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 a leverage factor of 189% |
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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 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 maturity date of CIBC’s Accelerated Return Notes linked to ITA?
How much upside can investors earn on the CM ARNs?
What happens if the iShares U.S. Aerospace & Defense ETF declines?
What is the participation rate on the CIBC structured notes?
How large is the issuance of these CM Accelerated Return Notes?
