By Taylor Fox
New York, Nov. 16 – Morgan Stanley Finance LLC sold $3 million of callable contingent income securities due Oct. 24, 2023 tied to the worst performing of the VanEck Vectors Gold Miners ETF and the iShares Silver Trust, according to a 424B2 filing with the Securities and Exchange Commission.
Each month, the notes will pay a contingent coupon at the rate of 11.15% per year if each fund closes at or above its coupon threshold level, 60% of its initial level, on the related determination date.
The notes will be callable at par on any quarterly observation date after six months.
The payout at maturity will be par plus the coupon unless any fund finishes below its 60% downside threshold, in which case investors will be fully exposed to the performance of the least 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: | VanEck Vectors Gold Miners ETF and the iShares Silver Trust
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| Amount: | $3 million
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| Maturity: | Oct. 24, 2023
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| Coupon: | 11.15% per year, payable each month if each fund closes at or above its coupon threshold level on the related determination date
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| Price: | Par
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| Call option: | At par on any quarterly observation date after six months
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| Payout at maturity: | Par plus any coupon unless any fund finishes below its downside threshold, in which case investors will be fully exposed to the performance of the least performing fund
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| Initial levels: | $39.16 for Gold and $22.58 for Silver
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| Coupon thresholds: | $23.496 for Gold and $13.548 for Silver, or 60% of initial levels
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| Downside threshold levels: | $23.496 for Gold and $13.548 for Silver, or 60% of initial levels
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| Pricing date: | Oct. 21
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| Settlement date: | Oct. 26
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 1.5%
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| Cusip: | 61771EDL9
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