Published on 11/7/2023 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley sells $2.06 million contingent market-linked autocalls on three indexes
By Wendy Van Sickle
Columbus, Ohio, Nov. 7 – Morgan Stanley Finance LLC priced $2.06 million of 0% market-linked securities – autocallable with contingent contingent downside due Nov. 1, 2027 linked to the performance of the S&P 500 index, the Russell 2000 index and the Dow Jones industrial average, according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by Morgan Stanley.
The notes will be called at par plus a 10.6% annualized call premium if each index closes at or above the initial level on any quarterly call observation date after one year.
The payout at maturity will be par plus the final call payment if each index finishes at or above its initial level. If the laggard index falls but finishes at or above its 65% downside threshold, the payout will be par.
Otherwise, investors will be fully exposed to the decline of the worst performer from its initial level.
Morgan Stanley & Co. LLC and Wells Fargo Securities, LLC are the agents.
| Issuer: | Morgan Stanley Finance LLC
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| Guarantor: | Morgan Stanley
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| Issue: | Market linked securities – autocallable with contingent contingent downside
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| Underlying indexes: | S&P 500 index, Russell 2000 index, Dow Jones industrial average
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| Amount: | $2,059,000
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| Maturity: | Nov. 1, 2027
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| Coupon: | 0%
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| Price: | Par
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| Payout at maturity: | Par plus final call if each index finishes at or above its initial level; if any index falls but not below downside threshold, par; otherwise, 1% loss for every 1% decline of worst performer from its initial level
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| Call: | At par plus 10.6% annualized call premium if each index closes at or above its initial level on any quarterly call observation date after one year
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| Initial levels: | 4,117.37 for S&P, 1,636.938 for Russell, 32,417.59 for Dow Jones
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| Downside thresholds: | 2,676.2905 for S&P, 1,064.0097 for Russell, 21,071.4335 for Dow Jones; 65% of initial levels
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| Pricing date: | Oct. 27
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| Settlement date: | Nov. 1
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| Agents: | Morgan Stanley & Co. LLC and Wells Fargo Securities, LLC
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| Fees: | 2.575%
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| Cusip: | 61775MLT1
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