Published on 9/21/2023 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $17.19 million trigger callable contingent yield notes on Nasdaq, Russell, S&P
By Wendy Van Sickle
Columbus, Ohio, Sept. 21 – Morgan Stanley Finance LLC priced $17.19 million of trigger callable contingent yield notes with daily coupon observation due March 19, 2026 linked to the performance of the Nasdaq-100 index, the Russell 2000 index and the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a quarterly contingent coupon at an annual rate of 10.33% if each index’s closing level is at least 70% of its initial level on every day that quarter.
The notes will be callable at par on any quarterly observation date.
If the notes are not called and each index finishes at or above its 60% trigger level, the payout at maturity will be par plus the final coupon, if any.
Otherwise, investors will lose 1% for every 1% that the worst performer’s final level is below its initial level.
The notes are guaranteed by Morgan Stanley.
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 callable contingent yield notes with daily coupon observation
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| Underlying indexes: | Nasdaq-100 index, Russell 2000 index, S&P 500 index
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| Amount: | $17,188,500
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| Maturity: | March 19, 2026
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| Coupon: | 10.33% per year, payable quarterly if each index closes at or above its coupon barrier every day that quarter
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| Price: | Par
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| Payout at maturity: | Par plus the final coupon, if any, if each index finishes at or above trigger level; otherwise, full exposure to the decline of the worst performing index from initial level
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| Call option: | At par on any quarterly observation date
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| Initial levels: | 15,202.4 for Nasdaq, 1,847.033 for Russell, 4,450.32 for S&P
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| Coupon barrier levels: | 10,641.68 for Nasdaq, 1,292.923 for Russell, 3,115.22 for S&P; 70% of initial levels
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| Trigger levels: | 9,121.44 for Nasdaq, 1,108.22 for Russell, 2,670.19 for S&P; 60% of initial levels
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| Pricing date: | Sept. 15
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| Settlement date: | Sept. 20
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| Agents: | UBS Financial Services Inc. and Morgan Stanley & Co. LLC
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| Fees: | 1%
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| Cusip: | 61775K167
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