Published on 10/20/2023 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley sells $4.21 million 22.25% contingent income autocallables on stocks
Chicago, Oct. 20 – Morgan Stanley Finance LLC priced $4.21 million of contingent income autocallable securities due Oct. 16, 2026 linked to the worst performing of the common stocks of Charles Schwab Corp., NIKE, Inc. (class B) and Walgreens Boots Alliance, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
Investors will receive a coupon of 22.25%, paid monthly, if each underlying stock closes at or above its 65% coupon barrier on the related monthly observation date.
The securities will be called automatically starting Oct. 17, 2024 at par if the price of each underlying stock is greater than or equal to its initial price on any quarterly call determination date.
At maturity the payout will be par unless the worst performing stock closes below its 50% downside threshold level in which case investors will be fully exposed to the decline of the worst performing stock.
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: | Contingent income autocallable securities
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| Underlying stocks: | Charles Schwab Corp. (Ticker: SCHW), NIKE, Inc. (Ticker NKE) and Walgreens Boots Alliance, Inc. (Ticker: WBA)
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| Amount: | $4,211,000
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| Maturity: | Oct. 16, 2026
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| Coupon: | 22.25% annual rate, paid monthly, if each underlying stock closes at or above its 65% coupon barrier on the related monthly observation date
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| Price: | Par
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| Payout at maturity: | Par unless the worst performing stock closes below its downside threshold level in which case investors will be fully exposed to the decline in the worst performing stock
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| Call: | Automatically starting Oct. 17, 2024 at par if the price of each underlying stock is greater than or equal to its initial price on any quarterly call determination date
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| Initial levels: | $99.91 for NIKE, $51.33 for Charles Schwab, $23.25 for Walgreens
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| Coupon barriers: | $64.942 for NIKE, $33.365 for Charles Schwab, $15.113 for Walgreens, 65% of initial levels
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| Downside thresholds: | $49.955 for NIKE, $25.665 for Charles Schwab, $11.625 for Walgreens, 50% of initial level
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| Pricing date: | Oct. 13
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| Settlement date: | Oct. 18
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 1%
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| Cusip: | 61775MGR1
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