Published on 4/12/2023 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley sells $4.5 million callable contingent income buffered notes on indexes
By William Gullotti
Buffalo, N.Y., April 12 – Morgan Stanley Finance LLC priced $4.5 million of callable contingent income buffered securities due July 9, 2026 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 11% 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.
If each index 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 buffer level, 70% of its initial level, the payout at maturity will be par.
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: | Euro Stoxx 50 index, Russell 2000 index, S&P 500 index
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| Amount: | $4.5 million
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| Maturity: | July 9, 2026
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| Coupon: | 11% 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 each index finishes at or above coupon barrier; if worst performer finishes below coupon barrier but not below buffer level, par; 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
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| Initial levels: | 4,090.38 for S&P, 4,298.36 for Stoxx, 1,752.134 for Russell
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| Coupon barrier levels: | 3,067.785 for S&P, 3,223.77 for Stoxx, 1,314.101 for Russell; 75% of initial levels
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| Buffer levels: | 2,863.266 for S&P, 3,008.852 for Stoxx, 1,226.494 for Russell; 70% of initial levels
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| Strike date: | April 5
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| Pricing date: | April 6
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| Settlement date: | April 13
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 0.5%
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| Cusip: | 61774XNR0
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