Published on 11/21/2022 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $4.35 million trigger absolute return step notes on index basket
By William Gullotti
Buffalo, N.Y., Nov. 21 – Morgan Stanley Finance LLC priced $4.35 million of 0% trigger absolute return step securities due Nov. 18, 2027 linked to a basket of indexes, according to a 424B2 filing with the Securities and Exchange Commission.
The basket includes the Euro Stoxx 50 index with a 40% weight, the Nikkei 225 index with a 25% weight, the FTSE 100 index with a 17.5% weight, the Swiss Market index with a 10% weight and the S&P/ASX 200 index with a 7.5% weight.
The notes are guaranteed by Morgan Stanley.
If the final basket level is greater than or equal to the initial basket level, the payout at maturity will be par of $10 plus the greater of 61% and the basket return.
If the final basket level is less than the initial basket level and greater than or equal to the downside threshold level, 75% of the initial basket level, the payout will be par plus the absolute value of the basket return.
Otherwise, investors will lose 1% for every 1% that the final basket level is less than the initial basket level.
UBS Financial Services Inc. and Morgan Stanley & Co. LLC are the agents.
| Issuer: | Morgan Stanley Finance LLC
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| Guarantor: | Morgan Stanley
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| Issue: | Trigger absolute return step securities
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| Underlying indexes: | Euro Stoxx 50 (40% weight), Nikkei 225 (25% weight), FTSE 100 (17.5% weight), Swiss Market (10% weight), S&P/ASX 200 (7.5% weight)
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| Amount: | $4,353,700
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| Maturity: | Nov. 18, 2027
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| Coupon: | 0%
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| Price: | Par of $10
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| Payout at maturity: | If final basket level is greater than or equal to initial basket level, par plus greater of 61% and basket return; if final basket level is less than initial basket level and greater than or equal to downside threshold level, par plus absolute value of basket return; otherwise, 1% loss for every 1% decline from initial basket level
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| Initial levels: | 3,882.78 for Stoxx, 7,351.19 for FTSE, 28,028.3 for Nikkei, 10,936.62 for Swiss Market, 7,122.24 for S&P/ASX
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| Downside threshold: | 75% of initial basket level
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| Pricing date: | Nov. 16
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| Settlement date: | Nov. 18
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| Agents: | UBS Financial Services Inc. and Morgan Stanley & Co. LLC
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| Fees: | 3.5%
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| Cusip: | 61774Q207
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