Published on 4/10/2024 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $800,000 autocallable jump securities on stocks
By Kiku Steinfeld
Chicago, April 10 – Morgan Stanley Finance LLC priced $800,000 of jump securities with autocallable feature due July 2, 2026 linked to common stocks of Ford Motor Co., International Business Machines Corp. and Raytheon Technologies Corp., according to a 424B2 filing with the Securities and Exchange Commission.
The securities will be called automatically at 21.75% per year if the price of each underlying stock is greater than or equal to 90% of its initial price on July 8, 2024 and will decrease to 80% on June 20, 2025.
At maturity the payout will be par plus 65.25% if the worst performing underlier finishes above 70% of its initial level.
The payout will be par if the worst performing stock finishes below 70% of its initial level but above its 60% downside threshold level. Investors will be fully exposed to the decline of the worst performing stock if it finishes below its 60% downside threshold level.
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: | Jump securities with autocallable feature
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| Underlying stocks: | Ford Motor Co., International Business Machines Corp. and Raytheon Technologies Corp.
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| Amount: | $800,000
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| Maturity: | July 2, 2026
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| Coupon: | 0%
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| Price: | Par
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| Payout at maturity: | Par plus 65.25% if worst performer closes above 70% of initial level; par if the worst performing stock finishes below 70% of its initial level but above its 60% downside threshold level, otherwise, investors will be fully exposed to the decline of the worst performing stock
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| Call: | Automatically at 21.75% per year if the price of each underlying stock is greater than or equal to 90% of its initial price on July 8, 2024 and will decrease to 80% on June 30, 2025
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| Initial levels: | $14.95 for Ford Motor, $134.06 for International Business Machines, $97.80 for Raytheon Technologies
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| Downside thresholds: | $8.97 for Ford Motor, $80.436 for International Business Machines, $58.68 for Raytheon Technologies, 60% of initial level
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| Pricing date: | July 5, 2023
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| Settlement date: | July 10, 2023
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 0.25%
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| Cusip: | 61775HHH3
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