Published on 5/23/2023 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley sells $2.05 million callable contingent income buffered notes on indexes
By William Gullotti
Buffalo, N.Y., May 23 – Morgan Stanley Finance LLC priced $2.05 million of callable contingent income buffered securities due May 22, 2025 linked to the performance of the Nasdaq-100 index, the S&P 500 index and the Russell 2000 index, according to a 424B2 filed with the Securities and Exchange Commission.
The securities are guaranteed by Morgan Stanley.
The notes will pay a contingent monthly coupon at an annual rate of 8.5% if each index closes at or above its 75% coupon barrier on the corresponding observation date.
The notes may be called at par plus any coupon otherwise due on any quarterly review date after six months.
The payout at maturity will be par plus the final coupon if each index finishes at or above its 75% buffer level. Otherwise, investors will lose 1% for every 1% decline of the worst performer below 25%.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley Finance LLC
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| Issue: | Callable contingent income buffered securities
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| Guarantor: | Morgan Stanley
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| Underlying indexes: | S&P 500 index, Russell 2000 index, Nasdaq-100 index
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| Amount: | $2,049,000
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| Maturity: | May 22, 2025
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| Coupon: | 8.5% annualized, payable monthly if each index closes at or above coupon barrier on review date on the relevant review date
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| Price: | Par
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| Payout at maturity: | If each index finishes at or above buffer level, par plus final coupon; otherwise, 1% loss for each 1% decline of worst performing index below 25%
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| Call option: | At par plus any coupon otherwise due on any quarterly call date after six months
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| Initial levels: | 4,158.77 for S&P, 1,774.497 for Russell, 13,589.26 for Nasdaq
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| Coupon barrier levels: | 3,119.078 for S&P, 1,330.873 for Russell, 10,191.945 for Nasdaq; 75% of initial levels
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| Buffer levels: | 3,119.078 for S&P, 1,330.873 for Russell, 10,191.945 for Nasdaq; 75% of initial levels
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| Pricing date: | May 17
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| Settlement date: | May 22
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 0.7%
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| Cusip: | 61774XP80
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