Published on 10/7/2022 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley sells $2.5 million callable contingent income buffered notes on indexes
By Wendy Van Sickle
Columbus, Ohio, Oct. 7 – Morgan Stanley Finance LLC priced $2.5 million of callable contingent income buffered securities due Oct. 3, 2025 linked to the least performing of the Euro Stoxx 50 index, the S&P 500 index and the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by Morgan Stanley.
The notes will pay a contingent monthly coupon at the rate of 12.75% per year if each index closes at or above its coupon barrier level, 75% of its initial level, on the corresponding observation date.
The notes may be called at par plus any coupon due on any quarterly observation date after one year.
If each index finishes at or above its buffer level, 70% of its initial level, the payout at maturity will be par plus the final coupon, if any.
Otherwise, investors will lose 1.4286% for every 1% decline of the worst performer below the buffer.
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 buffered securities
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| Underlying indexes: | Russell 2000 index, S&P 500 index, Euro Stoxx 50 index
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| Amount: | $2.5 million
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| Maturity: | Oct. 3, 2025
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| Coupon: | 12.75% per year, payable monthly if each index closes at or above coupon barrier level on the observation date
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| Price: | Par
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| Payout at maturity: | Par plus final coupon, if any, if each index finishes at or above buffer level; otherwise, investors will lose 1.4286% for every 1% decline of the worst performer below 30%
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| Call: | At par plus any coupon due on any quarterly observation date after one year
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| Initial levels: | 3,318.2 for Stoxx, 3,585.62 for S&P, 1,664.716 for Russell
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| Coupon barriers: | 2,488.65 for Stoxx, 2,689.215 for S&P, 1,248.537 for Russell; 75% of initial levels
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| Buffers: | 2,322.74 for Stoxx, 2,509.934 for S&P, 1,165.301 for Russell; 70% of initial levels
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| Pricing date: | Sept. 30
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| Settlement date: | Oct. 5
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 0.5%
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| Cusip: | 61774HPB8
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