Published on 3/2/2024 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $422,000 10.75% contingent income buffered autocalls on ETFs
By Kiku Steinfeld
Chicago, March 4 – Morgan Stanley Finance LLC priced $422,000 of contingent income buffered autocallable securities due April 1, 2026 linked to iShares Silver Trust and VanEck Gold Miners ETF, according to a 424B2 filing with the Securities and Exchange Commission.
Investors will receive a coupon of 10.75%, paid monthly, if each underlying fund closes at or above its 80% coupon barrier on the related monthly observation date.
The securities will be called automatically starting Jan. 2, 2024 at par on any quarterly call determination date if each ETF closes at or above its initial level.
At maturity the payout will be par unless any fund declines by more than its 15% buffer in which case investors will be exposed to the decline of the lesser performing fund beyond its buffer.
The notes are guaranteed by Morgan Stanley.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley Finance LLC
|
| Guarantor: | Morgan Stanley
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| Issue: | Contingent income buffered autocallable securities
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| Underlying ETFs: | iShares Silver Trust and VanEck Gold Miners ETF
|
| Amount: | $422,000
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| Maturity: | April 1, 2026
|
| Coupon: | 10.75%, paid monthly, if each underlying fund closes at or above its 80% coupon barrier on the related monthly observation date
|
| Price: | Par
|
| Payout at maturity: | Par if the lesser performing fund gains or loses no more than its 15% buffer, otherwise investors will be exposed to the decline in lesser performing fund beyond buffer
|
| Call: | Automatically starting Jan. 2, 2024 at par on any quarterly call determination date if each ETF closes at or above its initial level
|
| Initial levels: | $20.98 for Silver, $29.65 for Gold
|
| Coupon barriers: | $16.784 for Silver, $23.72 for Gold, 80% of initial levels
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| Buffer levels: | $17.833 for Silver, $25.203 for Gold, 85% of initial levels
|
| Pricing date: | June 27, 2023
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| Settlement date: | June 30, 2023
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| Agent: | Morgan Stanley & Co. LLC
|
| Fees: | 2.6%
|
| Cusip: | 61771WBN7
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