By William Gullotti
Buffalo, N.Y., Dec. 1 – Morgan Stanley Finance LLC priced $2 million of contingent income autocallable securities due Nov. 30, 2023 linked to the shares of the Energy Select Sector SPDR Fund and the Financial Select Sector SPDR Fund, according to a 424B2 filed with the Securities and Exchange Commission.
The securities are guaranteed by Morgan Stanley.
The notes will pay a contingent quarterly coupon at an annual rate of 8.82% if each ETF closes at or above its 70% coupon barrier on the relevant observation date.
The notes will be called at par plus coupon if each ETF closes at or above its initial level on any quarterly review date.
The payout at maturity will be par plus the final coupon unless any ETF finishes below its 70% downside threshold, in which case investors will be fully exposed to the decline of the worst performer from its initial level.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley Finance LLC
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| Issue: | Contingent income autocallable securities
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| Guarantor: | Morgan Stanley
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| Underlying ETFs: | Energy Select Sector SPDR Fund, Financial Select Sector SPDR Fund
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| Amount: | $2 million
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| Maturity: | Nov. 30, 2023
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| Coupon: | 8.82% annualized, payable quarterly if each ETF closes at or above coupon barrier on the corresponding review date
|
| Price: | Par
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| Payout at maturity: | If each ETF finishes at or above downside threshold, par plus final coupon; otherwise, 1% loss for each 1% decline of worst performing ETF from its initial level
|
| Call: | At par plus coupon if each ETF closes at or above its initial level on any quarterly call date
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| Initial levels: | $55.58 for Energy, $38.77 for Financial
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| Coupon barrier levels: | $38.906 for Energy, $27.139 for Financial; 70% of initial levels
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| Downside thresholds: | $38.906 for Energy, $27.139 for Financial; 70% of initial levels
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| Pricing date: | Nov. 26
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| Settlement date: | Nov. 30
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 2.35%
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| Cusip: | 61773HKQ1
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