By Taylor Fox
New York, Feb. 23 – Morgan Stanley Finance LLC priced $4.24 million of contingent income autocallable securities due Feb. 24, 2023 linked to the worst performing of the Financial Select Sector SPDR fund and the Energy Select Sector SPDR fund, according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by Morgan Stanley.
The notes pay a contingent quarterly coupon at an annual rate of 10.75% if the funds close at or above their 65% coupon barrier levels on the observation date for that quarter.
The notes will be called at par plus the contingent coupon if each fund closes at or above its initial level on any quarterly determination date.
The payout at maturity will be par unless any fund finishes below its 65% downside threshold level, in which case investors will lose 1% for each 1% decline from the initial level for the worst performer.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley Finance LLC
|
| Guarantor: | Morgan Stanley
|
| Issue: | Contingent income autocallable securities
|
| Underlying funds: | Financial Select Sector SPDR fund and the Energy Select Sector SPDR fund
|
| Amount: | $4,240,000
|
| Maturity: | Feb. 24, 2023
|
| Coupon: | 10.75% per year, payable quarterly if least-performing fund closes at or above coupon barrier on observation date for that period
|
| Price: | Par
|
| Payout at maturity: | If least-performing fund’s final level is greater than or equal to downside threshold level, par plus any final coupon; otherwise, 1% loss for every 1% that least-performing fund’s final level is less than initial level
|
| Call: | At par plus contingent coupon if each fund closes at or above initial level on any quarterly determination date
|
| Initial share prices: | $32.03 for Financial Select and $45.42 for Energy Select
|
| Coupon barrier levels: | $20.82 for Financial Select and $29.523 for Energy Select, 65% of initial level
|
| Downside thresholds: | $20.82 for Financial Select and $29.523 for Energy Select, 65% of initial level
|
| Pricing date: | Feb. 18
|
| Settlement date: | Feb. 23
|
| Agent: | Morgan Stanley & Co. LLC
|
| Fees: | 2.35%
|
| Cusip: | 61771VAC4
|
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