New Issue: Morgan Stanley adds $65,000 more contingent income autocalls on sector funds

By Kiku Steinfeld

Chicago, Feb. 28 – Morgan Stanley Finance LLC priced an additional $65,000 of contingent income autocallable securities due Sept. 6, 2024 linked to 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.

The company priced an original $1,966,200 of the notes on Sept. 3. The additional $65,000 brings the total issue size to $2,031,200.

The notes will pay a quarterly coupon of 8.8% if each underlying fund closes at or above its 70% downside threshold on the related quarterly observation date.

The securities will be called automatically at par if the price of each underlying fund is greater than or equal to its initial price on any quarterly call determination date.

At maturity the payout will be par unless the worst performing fund closes below its 70% downside threshold, in which case investors will be fully exposed to the decline of the worst performing fund.

The notes are guaranteed by Morgan Stanley.

Morgan Stanley & Co. LLC is the agent.

Issuer:	Morgan Stanley Finance LLC
Guarantor:	Morgan Stanley
Issue:	Contingent income autocallable securities
Underlying ETFs:	Financial Select Sector SPDR fund, Energy Select Sector SPDR fund and Industrial Select Sector SPDR fund
Amount:	$65,000
Maturity:	Sept. 6, 2024
Coupon:	8.8% annual rate, paid quarterly, if each underlying fund closes at or above its 70% downside threshold on the related quarterly observation date
Price:	Par of $10
Payout at maturity:	Par unless the worst performing fund closes below its downside threshold level, in which case investors will be fully exposed to the decline in the worst performing underlying fund
Call:	Automatically at par if the price of each underlying fund is greater than or equal to its initial price on any quarterly call determination date
Initial levels:	$48.62 for Energy, $38.07 for Financial, $104.59 for Industrial
Downside thresholds:	$34.034 for Energy, $26.649 for Financial, $73.213 for Industrial, 70% of initial levels
Pricing date:	Sept. 3
Settlement date:	Sept. 9
Agent:	Morgan Stanley & Co. LLC
Fees:	2.5%
Cusip:	61773E254
Initial issue:	$1,966,200 on Sept. 9, 2021
Total issue size:	$2,031,200

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