Published on 9/19/2022 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley sells $4.25 million callable contingent income securities on indexes
Chicago, Sept. 19 – Morgan Stanley Finance LLC priced $4.25 million of floating-rate callable contingent income securities due Aug. 30, 2027 linked to the worst performing of the Euro Stoxx 50 index, Russell 2000 index and S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
The securities will pay a contingent floating-rate coupon. The coupon will be determined quarterly at SOFR plus 650 basis points, with a 0% floor. If each index closes above its 60% coupon barrier level on the quarterly observation date, investors will receive the floating-rate coupon.
The securities may be called starting after six months at par on any quarterly call date at the option of the issuer.
At maturity the payout will be par unless the worst performing index closes below its 60% downside threshold in which case investors will be fully exposed to the decline of that index.
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: | Floating-rate callable contingent income securities
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| Underlying indexes: | Euro Stoxx 50 index, Russell 2000 index and S&P 500 index
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| Amount: | $4,250,000
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| Maturity: | Aug. 30, 2027
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| Coupon: | SOFR plus 650 bps, floor of 0%, paid and determined quarterly, contingent if each underlying index closes at or above its 60% downside threshold on the related quarterly observation date
|
| Price: | Par
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| Payout at maturity: | Par unless the worst performing index closes below its downside threshold level in which case investors will be fully exposed to the decline in the worst performing underlying index
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| Call: | Starting after six months at par on any quarterly call date at option of issuer
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| Initial levels: | 1,964.636 for Russell, 3,674.54 for Stoxx, 4,199.12 for S&P
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| Coupon barrier levels: | 1,178.782 for Russell, 2,204.724 for Stoxx, 2,519.472 for S&P, 60% of initial levels
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| Downside threshold: | 1,178.782 for Russell, 2,204.724 for Stoxx, 2,519.472 for S&P, 60% of initial levels
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| Pricing date: | Aug. 29
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| Settlement date: | Sept. 1
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 0.2%
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| Cusip: | 61774FFA5
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