Morgan Stanley to price trigger absolute return step notes on basket

By Sarah Lizee

Olympia, Wash., Jan. 9 – Morgan Stanley Finance LLC plans to price 0% trigger absolute return step securities due Jan. 31, 2024 linked to a basket of indexes, according to a 424B2 filing with the Securities and Exchange Commission.

The basket consists of the Euro Stoxx 50 index with a 40% weight, the FTSE 100 index with a 20% weight, the Nikkei 225 index with a 20% weight, the Swiss Market index with a 7.5% weight, the S&P/ASX 200 index with a 7.5% weight and the Hang Seng index with a 5% weight

If the basket finishes at or above its initial level, the payout at maturity will be par plus the greater of the gain and the step return of 69% to 72.3%.

If the basket falls but finishes at or above the 70% downside threshold, the payout will be par plus the absolute value of the return.

Otherwise, investors will be fully exposed to any losses.

The notes are guaranteed by Morgan Stanley.

Morgan Stanley & Co. LLC and UBS Financial Services Inc. are the agents.

The notes will price on Jan. 29.

The Cusip number is 61768W640.

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