Published on 2/14/2024 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley sells $500,000 14.25% callable contingent income securities on ETFs
Chicago, Feb. 14 – Morgan Stanley Finance LLC priced $500,000 of callable contingent income securities due Dec. 31, 2026 linked to the worst performing of the SPDR S&P Biotech ETF, Energy Select Sector SPDR Fund and Utilities Select Sector SPDR Fund, according to a 424B2 filing with the Securities and Exchange Commission.
Investors will receive a coupon of 14.25%, paid monthly, if each underlying fund closes at or above its 70% coupon barrier on the related monthly observation date.
The securities may be called starting April 2, 2024 at par on any quarterly call date.
At maturity the payout will be par unless the worst performing fund closes below its 60% downside threshold in which case investors will be fully exposed to the decline of the worst performing fund.
The notes are guaranteed by Morgan Stanley.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley Finance LLC
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| Guarantor: | Morgan Stanley
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| Issue: | Callable contingent income securities
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| Underlying ETFs: | SPDR S&P Biotech ETF, Energy Select Sector SPDR Fund and Utilities Select Sector SPDR Fund
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| Amount: | $500,000
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| Maturity: | Dec. 31, 2026
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| Coupon: | 14.25% annual rate, paid monthly, if each underlying fund closes at or above its 70% coupon barrier on the related monthly observation date
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| Price: | Par
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| Payout at maturity: | Par unless the worst performing fund closes below its downside threshold level in which case investors will be fully exposed to the decline in the worst performing underlying fund
|
| Call: | Starting April 2, 2024 at par on any quarterly call date
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| Initial levels: | $90.86 for biotech, $84.03 for energy, $63.41 for utilities
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| Coupon barriers: | $63.602 for biotech, $58.821 for energy, $44.387 for utilities, 70% of initial levels
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| Downside thresholds: | $54.516 for biotech, $50.418 for energy, $38.046 for utilities, 60% of initial levels
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| Pricing date: | Dec. 28, 2023
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| Settlement date: | Jan. 3, 2024
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 0.25%
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| Cusip: | 61771WEN4
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