Published on 4/21/2023 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $2.75 million callable contingent income securities on three ETFs
New York, April 21 – Morgan Stanley Finance LLC priced $2.75 million of callable contingent income securities due Oct. 17, 2024 linked to the Financial Select Sector SPDR Fund, the iShares MSCI EAFE ETF and the Invesco QQQ Trust, Series 1, according to a 424B2 filing with the Securities and Exchange Commission.
Investors will receive a coupon of 11.5%, paid monthly, if each underlying fund closes at or above its 70% coupon barrier on the related monthly observation date.
The securities may be called at par on any quarterly call date starting Oct. 19, 2023.
At maturity, the payout will be par unless the worst performing fund finishes below its 60% 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, iShares MSCI EAFE ETF and Invesco QQQ Trust, Series 1
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| Amount: | $2.75 million
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| Maturity: | Oct. 17, 2024
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| Coupon: | 11.5%, paid monthly, if each underlying fund closes at or above its 70% coupon barrier on the related monthly observation date
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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 Oct. 19, 2023
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| Initial levels: | $73.22 for iShares MSCI EAFE ETF, $318.57 for Invesco QQQ Trust, Series 1, $32.88 for Financial Select Sector SPDR Fund
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| Downside thresholds: | $43.932 for iShares MSCI EAFE ETF, $191.142 for Invesco QQQ Trust, Series 1, $19.728 for Financial Select Sector SPDR Fund, 60% of initial levels
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| Coupon barriers: | $51.254 for iShares MSCI EAFE ETF, $222.999 for Invesco QQQ Trust, Series 1, $23.016 for Financial Select Sector SPDR Fund, 70% of initial levels
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| Pricing date: | April 14
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| Settlement date: | April 19
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 0.45%
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| Cusip: | 61774XQP1
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