By Sarah Lizee
Olympia, Wash., March 9 – Morgan Stanley Finance LLC priced $2.84 million of contingent income autocallable securities due March 3, 2023 linked to the lesser performing of the Financial Select Sector SPDR Fund, the Energy Select Sector SPDR Fund and the Industrial Select Sector SPDR Fund, according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes will pay a contingent coupon at the rate of 12.4% per year if each ETF closes at or above its coupon barrier level, 70% of its initial share price, on the determination date for that period.
The notes will be automatically called at par if each ETF closes at or above its call threshold level on any quarterly determination date. The threshold will be 100% of the initial share price for each ETF.
The payout at maturity will be par unless either ETF finishes below its barrier level, 70% of its initial share price, in which case investors will lose 1% for every 1% that the lesser-performing ETF declines.
The notes are guaranteed by Morgan Stanley.
Morgan Stanley & Co. LLC is the agent. Morgan Stanley Wealth Management is the dealer.
| Issuer: | Morgan Stanley Finance LLC
|
| Guarantor: | Morgan Stanley
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| Issue: | Contingent income autocallable securities
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| Underlying ETFs: | Financial Select Sector SPDR Fund, Energy Select Sector SPDR Fund and Industrial Select Sector SPDR Fund
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| Amount: | 2,840,700
|
| Maturity: | March 3, 2023
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| Coupon: | 12.4% per year, payable quarterly if each ETF closes at or above coupon barrier level on determination date for that period
|
| Price: | Par
|
| Payout at maturity: | Par unless either ETF finishes below barrier level, in which case 1% loss for every 1% that lesser-performing ETF declines
|
| Call: | Automatically at par if each ETF closes at or above its call threshold level on any quarterly determination date; the threshold will be 100% of the initial share price for each ETF
|
| Initial share prices: | $26.59 for financial ETF, $45.27 for energy ETF, $73.08 for industrial ETF
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| Coupon barrier level: | $18.613 for financial ETF, $31.689 for energy ETF, $51.156 for industrial ETF; 70% of initial share prices
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| Barrier level: | $18.613 for financial ETF, $31.689 for energy ETF, $51.156 for industrial ETF; 70% of initial share prices
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| Pricing date: | Feb. 28
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| Settlement date: | March 4
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| Agent: | Morgan Stanley & Co. LLC
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| Dealer: | Morgan Stanley Wealth Management
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| Fees: | 2.5%
|
| Cusip: | 61770G476
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