Published on 5/22/2023 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $1.2 million callable contingent income securities on three ETFs
New York, May 22 – Morgan Stanley Finance LLC priced $1.20 million of callable contingent income securities due May 21, 2025 linked to the SPDR S&P Regional Banking ETF, the Financial Select Sector SPDR Fund and the Technology Select Sector SPDR Fund, according to a 424B2 filing with the Securities and Exchange Commission.
Investors will receive a coupon of 19%, paid monthly, if each underlying fund closes at or above its 60% 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.
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: | SPDR S&P Regional Banking ETF, Financial Select Sector SPDR Fund and Technology Select Sector SPDR Fund
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| Amount: | $1,204,000
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| Maturity: | May 21, 2025
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| Coupon: | 19%, paid monthly, if each underlying fund closes at or above its 60% 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
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| Initial levels: | $36.96 for SPDR S&P Regional Banking ETF, $31.86 for Financial Select Sector SPDR Fund, $152.36 for Technology Select Sector SPDR Fund
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| Downside thresholds: | $22.176 for SPDR S&P Regional Banking ETF, $19.116 for Financial Select Sector SPDR Fund, $91.416 for Technology Select Sector SPDR Fund, 60% of initial levels
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| Pricing date: | May 16
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| Settlement date: | May 19
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 0.5%
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| Cusip: | 61774XQ30
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