By Wendy Van Sickle
Columbus, Ohio, Jan. 4 – Morgan Stanley Finance LLC priced $1.68 million of callable contingent income buffered securities due Dec. 26, 2025 linked to the least performing of the Nasdaq-100 index and the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by Morgan Stanley.
Each month, the notes will pay a contingent coupon at the rate of 5% per year if each index closes at or above its coupon barrier level, 85% of its initial level, on the observation date that month.
If each index finishes at or above its buffer level, 85% of its initial level, the payout at maturity will be par plus the final coupon.
If any index finishes below its downside threshold, investors will lose 1% for every 1% decline of the lesser performing index beyond 15%.
After one year, the notes will be callable at par on any quarterly date.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley Finance LLC
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| Guarantor: | Morgan Stanley
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| Issue: | Callable contingent income buffered securities
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| Underlying indexes: | Russell 2000 and Nasdaq-100
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| Amount: | $1,681,000
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| Maturity: | Dec. 26, 2025
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| Coupon: | 5% per year, payable monthly if each index closes at or above coupon barrier level on observation date that month
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| Price: | Par
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| Payout at maturity: | Par if each index finishes at or above downside threshold; if any index finishes below buffer level, investors will lose 1% for every 1% decline of the lesser performing index beyond 15%
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| Call option: | After one year, at par on any quarterly date after one year
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| Initial levels: | 12,690.26 for Nasdaq and 1,970.329 for Russell
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| Coupon barrier/buffers: | 10,786.721 for Nasdaq and 1,674.78 for Russell; 85% of initial levels
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| Pricing date: | Dec. 21
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| Settlement date: | Dec. 24
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 3.75%
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| Cusip: | 61771EQT8
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