New York, March 29 – Morgan Stanley Finance LLC priced $4.93 million of callable contingent income securities due March 26, 2026 linked to the Financial Select Sector SPDR Fund and the Utilities Select Sector SPDR Fund, according to a 424B2 filing with the Securities and Exchange Commission.
Investors will receive a coupon of 12.4%, paid monthly, if each underlying fund closes at or above its 70% downside threshold on the related monthly observation date, plus any previously unpaid coupons.
The securities may be called at par on any quarterly call date starting Sept. 27, 2023.
At maturity, the payout will be par unless the worst performing fund finishes 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
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| Guarantor: | Morgan Stanley
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| Issue: | Callable contingent income securities
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| Underlying ETFs: | Financial Select Sector SPDR Fund and Utilities Select Sector SPDR Fund
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| Amount: | $4,931,000
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| Maturity: | March 26, 2026
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| Coupon: | 12.4%, paid monthly, if each underlying fund closes at or above its 70% downside threshold on the related monthly observation date, plus any previously unpaid coupons
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| Price: | Par
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| Payout at maturity: | Par unless the worst performing fund finishes 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 option: | At par on any quarterly call date starting Sept. 27, 2023
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| Initial levels: | $31.22 for Financial Select Sector SPDR Fund, $64.36 for Utilities Select Sector SPDR Fund
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| Downside thresholds: | $21.854 for Financial Select Sector SPDR Fund, $45.052 for Utilities Select Sector SPDR Fund, 70% of initial levels
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| Pricing date: | March 22
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| Settlement date: | March 27
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 0.5%
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| Cusip: | 61774XBZ5
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