By William Gullotti
Buffalo, N.Y., Sept. 29 – Morgan Stanley Finance LLC changed the payout terms of its $3.72 million of 0% dual directional knock-out notes with daily trigger monitoring due May 15, 2025 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, 123.75% of the initial index level, or below the downside knock-out level, 80% of the initial index level, on any trading day 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 par plus 23.75% and a minimum of par plus 5%.
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, subject to a maximum return of par plus 20% and a minimum of par plus 5%.
If a trigger event has occurred, the payout will be par plus 5%.
Prior to the amendment, there was no 5% minimum return if a trigger event had not occurred.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley Finance LLC
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| Guarantor: | Morgan Stanley
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| Issue: | Dual directional knock-out notes with daily trigger monitoring
|
| Underlying index: | S&P 500 index
|
| Amount: | $3,724,000
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| Maturity: | May 15, 2025
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| Coupon: | 0%
|
| Price: | Par
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| Trigger event: | Index closes above upside knock-out level or below downside knock-out level on any trading day during life of notes
|
| Payout at maturity: | If a trigger event has not happened and the final index level is greater than or equal to the initial index level, par plus the index return, subject to a maximum return of par plus 23.75% and a minimum of par plus 5%; if a trigger event has not happened and the final index level is less than the initial index level, par plus the absolute value of the index return, subject to a maximum return of par plus 20% and a minimum of par plus 5%; if a trigger event has occurred, par plus 5%
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| Initial level: | 4,124.08
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| Downside knock-out: | 3,299.26; 80% of initial level
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| Upside knock-out: | 5,103.55; 123.75% of initial level
|
| Pricing date: | May 12
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| Settlement date: | May 17
|
| Agent: | Morgan Stanley & Co. LLC
|
| Fees: | 2%
|
| Cusip: | 61774XYE7
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