Published on 8/29/2022 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley sells $525,000 contingent market-linked autocalls on three indexes
Chicago, Aug. 29 – Morgan Stanley Finance LLC priced $525,000 of market-linked securities – autocallable with contingent coupon and contingent downside due Oct. 25, 2023 linked to the performance of the Dow Jones industrial average, the Russell 2000 index and the Nasdaq-100 index, 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 7.6% per year if each index closes at or above the coupon barrier level, 70% of initial level, on the observation date for that period.
The notes will be called at par plus an interest payment if each index closes at or above the 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 index finishes at or above its respective 70% downside threshold. 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 indexes: | Dow Jones industrial average, Russell 2000 index, Nasdaq-100 index
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| Amount: | $525,000
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| Maturity: | Oct. 25, 2023
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| Coupon: | 7.6% annual rate, payable quarterly if all indexes close at or above their coupon barrier levels on the relevant observation date
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| Price: | Par
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| Payout at maturity: | Par plus final coupon if each index 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 index closes at or above its initial level on any quarterly call observation date after six months
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| Initial levels: | 34,715.39 for Dow, 2,024.037 for Russell, 14,846.46 for Nasdaq
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| Coupon barriers: | 24,300.773 for Dow, 1,416.8259 for Russell, 10,392.522 for Nasdaq; 70% of initial levels
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| Downside thresholds: | 24,300.773 for Dow, 1,416.8259 for Russell, 10,392.522 for Nasdaq; 70% of initial levels
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| Pricing date: | Jan. 20
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| Settlement date: | Jan. 25
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| Agents: | Morgan Stanley & Co. LLC and Wells Fargo Securities, LLC
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| Fees: | 1.6%
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| Cusip: | 61773HYV5
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