By Sarah Lizee
Olympia, Wash., Jan. 3 – Morgan Stanley Finance LLC priced $250,000 of contingent income autocallable securities due Dec. 27, 2024 linked to the lesser performing of the Financial Select Sector SPDR fund, the Energy Select Sector SPDR fund and the Utilities Select Sector SPDR fund, according to a 424B2 filing with the Securities and Exchange Commission.
Each month, the notes will pay a contingent coupon at the rate of 10% per year if each ETF closes at or above its coupon barrier level, 75% of its initial share price, on the determination date for that period.
The notes will be automatically called at par if each ETF closes at or above its call threshold level on any quarterly determination date after six months. The threshold will be 100% of the initial share price for each ETF.
The payout at maturity will be par unless either ETF finishes below its barrier level, 65% of its initial share price, in which case investors will lose 1% for every 1% that the lesser-performing ETF declines.
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: | Contingent income autocallable securities
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| Underlying ETFs: | Financial Select Sector SPDR fund, Energy Select Sector SPDR fund and Utilities Select Sector SPDR fund
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| Amount: | $250,000
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| Maturity: | Dec. 27, 2024
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| Coupon: | 10% per year, payable monthly if each ETF closes at or above coupon barrier level on determination date for that period
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| Price: | Par
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| Payout at maturity: | Par unless either ETF finishes below barrier level, in which case 1% loss for every 1% that lesser-performing ETF declines
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| Call: | Automatically at par if each ETF closes at or above its call threshold level on any quarterly determination date after six months; the threshold will be 100% of the initial share price for each ETF
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| Initial share prices: | $30.61 for financial fund, $61.99 for energy fund, $63.99 for utilities fund
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| Coupon barrier level: | $22.958 for financial fund, $46.493 for energy fund, $47.993 for utilities fund; 75% of initial share prices
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| Barrier level: | $19.897 for financial fund, $40.294 for energy fund, $41.594 for utilities fund; 65% of initial share prices
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| Pricing date: | Dec. 23
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| Settlement date: | Dec. 27
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 3.35%
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| Cusip: | 61769H4Y8
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