Chicago, Feb. 15 – Morgan Stanley Finance LLC priced $2.5 million of contingent income autocallable securities due May 7, 2029 linked to the worst performing of the Russell 2000 index and Euro Stoxx 50 index, according to a 424B2 filing with the Securities and Exchange Commission.
Investors will receive a coupon of 8%, paid quarterly, for the first two years irrespective of the performance of the indexes. Starting in year three, if each underlying index closes at or above its initial level on the related quarterly observation date, the notes will pay a contingent 8% coupon and the payment will include previously unpaid coupons.
The securities will be called automatically starting May 7, 2024 at par plus the previously unpaid coupons if the level of each underlying index is greater than or equal to its initial level on any quarterly call determination date.
At maturity the payout will be par unless the worst performing index closes below its 50% downside threshold level in which case investors will be fully exposed to the decline of the worst performing 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: | Contingent income autocallable securities
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| Underlying indexes: | Russell 2000 index and Euro Stoxx 50 index
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| Amount: | $2.5 million
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| Maturity: | May 7, 2029
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| Coupon: | 8%, paid quarterly, in years one and two irrespective of index performance; starting in year three 8% contingent coupon paid quarterly if each underlying index closes at or above its initial level on the related quarterly observation date including any unpaid coupons
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| 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 index
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| Call: | Automatically starting May 7, 2024 at par plus unpaid coupons if the level of each underlying index is greater than or equal to its initial level on any quarterly call determination date
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| Initial levels: | 1,882.913 for Russell, 3,732.44 for Stoxx
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| Downside thresholds: | 941.457 for Russell, 1,866.22 for Stoxx, 50% of initial levels
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| Pricing date: | May 2, 2022
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| Settlement date: | May 4, 2022
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 3.35%
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| Cusip: | 61773Q5V7
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