By Kiku Steinfeld
Chicago, Oct. 4 – Morgan Stanley Finance LLC priced $3.03 million of contingent income autocallable securities due Sept. 20, 2024 linked to the worse performing of the Financial Select Sector SPDR fund, Energy Select Sector SPDR fund and the Technology Select Sector SPDR fund, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annual rate of 8.45% if each ETF closes at or above its 65% downside threshold on the determination date that quarter.
The notes will be called at par of $10 plus the contingent coupon if each ETF closes at or above its initial level on any quarterly determination date other than the final determination date.
The payout at maturity will be par plus the contingent coupon unless either ETF finishes below its 65% downside threshold, in which case investors will lose 1% for each 1% decline of the lesser performing ETF.
The notes are guaranteed by Morgan Stanley.
Morgan Stanley & Co. LLC is the agent. Morgan Stanley Wealth Management is a selected dealer.
| Issuer: | Morgan Stanley Finance LLC
|
| Guarantor: | Morgan Stanley
|
| Issue: | Contingent income autocallable securities
|
| Amount: | $3,030,600
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| Underlying ETFs: | Financial Select Sector SPDR fund, Energy Select Sector SPDR fund, Technology Select Sector SPDR fund
|
| Maturity: | Sept. 20, 2024
|
| Coupon: | 8.45% annualized for each quarter that each ETF closes at or above downside threshold on observation date for quarter
|
| Price: | Par of $10
|
| Payout at maturity: | Par plus contingent coupon if each ETF finishes at or above downside threshold; otherwise, 1% loss for each 1% decline of worst performing ETF
|
| Call: | At par plus contingent payment if each ETF closes at or above initial level on any quarterly determination date other than the final determination date
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| Initial levels: | $37.58 for Financial, $49.32 for Energy, $155.48 for Technology
|
| Downside thresholds: | $24.427 for Financial, $32.058 for Energy, $101.062 for Technology; 65% of initial levels
|
| Pricing date: | Sept. 17
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| Settlement date: | Sept. 22
|
| Agent: | Morgan Stanley & Co. LLC with Morgan Stanley Wealth Management as a selected dealer
|
| Fees: | 2.5%
|
| Cusip: | 61773E502
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