Published on 11/1/2022 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $590,000 contingent coupon autocallables tied to four funds
Chicago, Nov. 1 – Morgan Stanley Finance LLC priced $590,000 of market-linked securities – autocallable with contingent coupon and contingent downside – due Feb. 27, 2025 linked to the worst performing of the Financial Select Sector SPDR fund, Energy Select Sector SPDR fund, the Technology Select Sector SPDR fund and the Consumer Staples Sector SPDR fund, according to a 424B2 filing with the Securities and Exchange Commission.
Investors will receive a coupon of 13.25%, paid quarterly, if each underlying fund closes at or above its 70% coupon barrier on the related observation date.
The securities will be called automatically starting after six months 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 and Wells Fargo Securities, LLC are the agents.
| Issuer: | Morgan Stanley Finance LLC
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| Guarantor: | Morgan Stanley
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| Issue: | Market-linked securities – autocallable with contingent and contingent downside
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| Underlying ETFs: | Financial Select Sector SPDR fund, Energy Select Sector SPDR fund, Technology Select Sector SPDR fund and Consumer Staples Sector SPDR fund
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| Amount: | $590,000
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| Maturity: | Feb. 27, 2025
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| Coupon: | 13.25% annual rate, paid quarterly, if each underlying fund closes at or above its 70% coupon barrier on the related observation date
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| Price: | Par
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| 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
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| Call: | Automatically starting after six months at par if the price of each underlying fund is greater than or equal to its initial price on any quarterly call determination date
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| Initial levels: | $38.52 for financial, $70.58 for energy, $154.07 for technology, $74.90 for consumer
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| Coupon barrier: | $26.964 for financial, $49.406 for energy, $107.849 for technology, $52.43 for consumer, 70% of initial levels
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| Downside thresholds: | $26.964 for financial, $49.406 for energy, $107.849 for technology, $52.43 for consumer, 70% of initial levels
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| Pricing date: | Feb. 28
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| Settlement date: | March 3
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| Agents: | Morgan Stanley & Co. LLC and Wells Fargo Securities, LLC
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| Fees: | 2.125%
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| Cusip: | 61773H2N8
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