Published on 8/31/2023 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley sells $2.84 million contingent market-linked memory autocalls on stocks
By William Gullotti
Buffalo, N.Y., Aug. 31 – Morgan Stanley Finance LLC priced $2.84 million of market-linked securities – autocallable with contingent coupon with memory feature and contingent downside due Aug. 21, 2026 linked to the stock performance of ConocoPhillips, Chevron Corp., Halliburton Co., and Exxon Mobil Corp., according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by Morgan Stanley.
The notes will pay a contingent quarterly interest payment at the rate of 10.66% per year if each stock closes at or above the coupon barrier level, 50% of the initial share level, on the observation date for that period. Previously unpaid interest, if any, will be automatically included whenever interest is paid.
The notes will be called at par plus an interest payment if each stock closes at or above its initial level on any quarterly call observation date after six months.
The payout at maturity will be par plus the final interest payment if each stock finishes at or above its respective downside threshold, 50% of its initial level.
Otherwise, investors will be fully exposed to the decline of the worst performer from its initial level.
Morgan Stanley & Co. LLC and Wells Fargo Securities, LLC are the agents.
| Issuer: | Morgan Stanley Finance LLC
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| Guarantor: | Morgan Stanley
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| Issue: | Market linked securities – autocallable with contingent coupon and contingent downside
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| Underlying stocks: | ConocoPhillips, Chevron Corp., Halliburton Co., and Exxon Mobil Corp.
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| Amount: | $2,836,000
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| Maturity: | Aug. 21, 2026
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| Coupon: | 10.66% annual rate, payable quarterly if each stock closes at or above coupon barrier level on the relevant observation date; coupon payment events will automatically include any previously unpaid coupons
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| Price: | Par
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| Payout at maturity: | Par plus final coupon of each stock finishes at or above its downside threshold; otherwise, 1% loss for every 1% decline of worst performer from its initial level
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| Call: | At par plus coupon if each stock closes at or above its initial level on any quarterly call observation date after six months
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| Initial levels: | $117.29 for ConocoPhillips, $160.90 for Chevron, $39.40 for Halliburton, $110.04 for Exxon Mobil
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| Coupon barriers: | $58.645 for ConocoPhillips, $80.45 for Chevron, $19.70 for Halliburton, $55.02 for Exxon Mobil; 50% of initial levels
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| Downside thresholds: | $58.645 for ConocoPhillips, $80.45 for Chevron, $19.70 for Halliburton, $55.02 for Exxon Mobil; 50% of initial levels
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| Pricing date: | Aug. 18
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| Settlement date: | Aug. 23
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| Agents: | Morgan Stanley & Co. LLC and Wells Fargo Securities, LLC
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| Fees: | 2.325%
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| Cusip: | 61775HQL4
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