By William Gullotti
Buffalo, N.Y., Aug. 4 – Morgan Stanley Finance LLC priced $15 million of 0% securities due Oct. 26, 2027 linked to the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
If the index finishes above the 118% upper strike threshold, the payout at maturity will be $15.804 per $10 stated principal amount plus an additional return of 1.19263% for each 1% gain above the upper strike value, subject to a maximum payout of par plus 80.7%.
If the index finishes below the upper strike threshold but finishes at or above the 98% middle strike threshold, the payout at maturity will be par plus 2.902% for every 1% that the index finishes above the middle strike value.
If the index finishes below the middle strike threshold but finishes at or above the 90% lower strike threshold, the payout will be par.
If the index falls by more than 10% but no more than 30%, investors will lose 1.5% for every 1% decline beyond 10%.
If the index finishes below the downside threshold, investors will lose 1% for every 1% that the index declines from its initial level.
The securities are guaranteed by Morgan Stanley.
Morgan Stanley & Co. LLC is the agent. Morgan Stanley Wealth Management is the dealer.
| Issuer: | Morgan Stanley Finance LLC
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| Guarantor: | Morgan Stanley
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| Issue: | Securities
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| Underlying index: | Russell 2000 index
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| Amount: | $15 million
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| Maturity: | Oct. 26, 2027
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| Coupon: | 0%
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| Price: | Par of $10
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| Payout at maturity: | If the index finishes above the upper strike threshold, the payout at maturity will be $15.804 per $10 stated principal amount plus an additional return of 1.19263% for each 1% gain above the upper strike value, subject to a maximum payout of par plus 80.7%; if the final index average is below the upper strike threshold but greater than or equal to the middle strike threshold, par plus 2.902% for every 1% that the index finishes above the middle strike value; if the final index average is below the middle strike threshold but greater than or equal to the lower strike threshold, par; if the index falls by more than 10% but no more than 30%, lose 1.5% for every 1% decline beyond 10%; otherwise, lose 1% for every 1% decline from initial level
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| Initial level: | Arithmetic average of index closing level on each trading day from July 27 to Aug. 19
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| Final level: | Arithmetic average of index closing level on each trading day from July 26, 2027 to Oct. 21, 2027
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| Upper strike threshold: | 118% of initial level
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| Middle strike threshold: | 98% of initial level
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| Lower strike threshold: | 90% of initial level
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| Downside threshold: | 70% of initial level
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| Pricing date: | Aug. 1
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| Settlement date: | Aug. 4
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| Agent: | Morgan Stanley & Co. LLC
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| Dealer: | Morgan Stanley Wealth Management
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| Fees: | 0.25%
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| Cusip: | 61774B804
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