Published on 9/13/2023 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $719,000 autocallable jump notes on indexes
By Kiku Steinfeld
Chicago, Sept. 13 – Morgan Stanley Finance LLC priced $719,000 of jump securities with autocallable feature due March 6, 2028 linked to S&P 500 index, Dow Jones industrial average and Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
The securities will be called automatically starting March 4, 2024 at a price to give a return of 10.5% per year if the level of each underlying index is greater than or equal to 95% of its initial level on any semiannual determination date.
At maturity the payout will be par plus 52.5% if the worst performing underlier finishes above 95% of its initial level.
The payout will be par if worst performing index finishes below 95% of its initial level but above its 75% trigger level. Investors will be fully exposed to the decline of worst performing index if it finishes below its 75% trigger level.
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: | Jump securities with autocallable feature
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| Underlying indexes: | S&P 500 index, Dow Jones industrial average and Russell 2000 index
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| Amount: | $719,000
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| Maturity: | March 6, 2028
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| Coupon: | 0%
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| Price: | Par
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| Payout at maturity: | Par plus 52.5% if worst performing index finishes above its call threshold level; par if worst performing index finishes below 95% of its initial level but above 75% trigger level; otherwise full exposure to decline of worst performing index
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| Call: | Automatically starting March 4, 2024 at a price to give a return of 10.5% per year if the level of each underlying index is greater than or equal to 95% of its initial level on any semiannual determination date
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| Initial levels: | 32,661.84 for Dow, 1,898.433 for Russell, 3,951.39 for S&P
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| Downside thresholds: | 24,496.38 for Dow, 1,423.825 for Russell, 2,963.543 for S&P, 75% of initial level
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| Call thresholds: | 31,028.748 for Dow, 1,803.511 for Russell, 3,753.821 for S&P, 95% of initial levels
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| Pricing date: | March 1, 2023
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| Settlement date: | March 6, 2023
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 2%
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| Cusip: | 61774TQ96
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