Published on 12/13/2023 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $1.2 million callable contingent income buffered securities
By William Gullotti
Buffalo, N.Y., Dec. 13 – Morgan Stanley Finance LLC priced $1.2 million of callable contingent income buffered securities due Aug. 6, 2025 linked to the least performing of the Utilities Select Sector SPDR Fund, the Nasdaq-100 index and the S&P 500 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 6.45% per year if each underlier closes at or above its coupon barrier level, 80% 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.
If each underlier finishes at or above its coupon barrier, the payout at maturity will be par plus the final coupon.
If the worst performer finishes below its coupon barrier but at or above its 60% buffer level, the payout will be par.
Otherwise, investors will lose 1% for every 1% decline of the worst performer below 40%.
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 assets: | Utilities Select Sector SPDR Fund, S&P 500 index, Nasdaq-100 index
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| Amount: | $1.2 million
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| Maturity: | Aug. 6, 2025
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| Coupon: | 6.45% per year, payable monthly if each underlier 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 each underlier finishes at or above coupon barrier; if worst performer finishes below coupon barrier but not below buffer level, par; otherwise, investors will lose 1% for every 1% decline of the worst performer below 40%
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| Call option: | At par plus any coupon due on any quarterly observation date
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| Initial levels: | 15,788.05 for Nasdaq, $63.67 for ETF, 4,549.34 for S&P
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| Coupon barriers: | 12,630.44 for Nasdaq, $50.936 for ETF, 3,639.472 for S&P; 80% of initial levels
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| Buffer levels: | 9,472.83 for Nasdaq, $38.202 for ETF, 2,729.604 for S&P; 60% of initial levels
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| Pricing date: | Dec. 6
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| Settlement date: | Dec. 11
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 0.3%
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| Cusip: | 61775M3A2
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