Published on 5/15/2023 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $765,000 contingent coupon autocallables linked to SPDR funds
By Angela McDaniels
Tacoma, Wash., May 15 – Morgan Stanley Finance LLC priced $765,000 of market-linked securities – autocallable with contingent coupon and contingent downside due May 30, 2025 linked to the Financial Select Sector SPDR fund, the Energy Select Sector SPDR fund, the Technology Select Sector SPDR fund and the Consumer Staples Select Sector SPDR fund, according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes will pay a contingent coupon at the rate of 16% per year if each fund closes at or above its downside threshold price, 70% of its initial share price, on the determination date for that quarter.
Beginning in November 2022, the notes will be automatically called at par if each fund closes at or above its initial share price on a quarterly determination date.
The payout at maturity will be par unless the least-performing fund finishes below its downside threshold price, in which case investors will be exposed to the decline of the least-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
|
| Guarantor: | Morgan Stanley
|
| Issue: | Market-linked securities – autocallable with contingent coupon and contingent downside
|
| Underlying ETFs: | Financial Select Sector SPDR fund, Energy Select Sector SPDR fund, Technology Select Sector SPDR fund and Consumer Staples Select Sector SPDR fund
|
| Amount: | $765,000
|
| Maturity: | May 30, 2025
|
| Coupon: | 16% per year, payable quarterly if each fund closes at or above downside threshold price on determination date for that quarter
|
| Price: | Par
|
| Payout at maturity: | Par unless least-performing fund finishes below downside threshold price, in which case investors will be exposed to decline of least-performing fund
|
| Call: | Beginning in November 2022, automatically at par if each fund closes at or above initial share price on a quarterly determination date
|
| Initial share prices: | $35.47 for financial fund, $87.20 for energy fund, $140.45 for technology fund and $74.47 for consumer staples fund
|
| Downside thresholds: | $24.829 for financial fund, $61.04 for energy fund, $98.315 for technology fund and $52.129 for consumer staples fund, or 70% of initial share prices
|
| Pricing date: | May 31, 2022
|
| Settlement date: | June 3, 2022
|
| Agents: | Morgan Stanley & Co. LLC and Wells Fargo Securities, LLC
|
| Fees: | 2.125%
|
| Cusip: | 61773Q5K1
|
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
