Morgan Stanley eyes dual directional knock-out notes linked to S&P 500

By Sarah Lizee

Olympia, Wash., April 30 – Morgan Stanley Finance LLC plans to price 0% dual directional knock-out notes with daily trigger monitoring due May 18, 2023 linked to the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.

The notes are guaranteed by Morgan Stanley.

A trigger event occurs if the index closes above the upside knock-out level, 120% of the initial index level, or below the downside knock-out level, 80% of the initial index level, during the life of the notes.

If a trigger event has not happened and the final index level is greater than or equal to the initial index level, the payout at maturity will be par plus the index return, subject to a maximum return of 20%.

If a trigger event has not happened and the final index level is less than the initial index level, the payout will be par plus the absolute value of the index return.

If a trigger event has occurred, the payout will be par plus 1.5% to 3.5%.

Morgan Stanley & Co. LLC is the agent.

The notes will price on May 15.

The Cusip number is 61770FX76.

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