Published on 1/14/2024 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $540,000 10.5% callable fixed income notes on Russell, Nasdaq, Dow
By Kiku Steinfeld
Chicago, Jan. 16 – Morgan Stanley Finance LLC sold $540,000 of 10.5% callable fixed income securities due May 1, 2025 tied to the worst performing of the Nasdaq-100 index, the Dow Jones industrial average and the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
Interest will be paid monthly.
The notes will be callable at par plus the coupon on any quarterly observation date after six months.
If the notes are not called and each index finishes at or above its 70% downside threshold, the payout at maturity will be par plus the fixed coupon.
Otherwise, investors will lose 1% for every 1% decline of the worst performer from its initial 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: | Callable fixed income securities
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| Underlying indexes: | Nasdaq-100 index, Dow Jones industrial average, Russell 2000 index
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| Amount: | $540,000
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| Maturity: | May 1, 2025
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| Coupon: | 10.5% per year, payable monthly
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| Price: | Par
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| Payout at maturity: | Par plus final coupon if each index finishes at or above downside threshold; otherwise, investors will lose 1% for every 1% decline of the worst performer from its initial level
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| Call option: | At par plus fixed coupon on any quarterly observation date after six months
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| Initial levels: | 12,806.48 for Nasdaq, 1,730.411 for Russell, 33,301.87 for Dow
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| Downside threshold levels: | 8,964.536 for Nasdaq, 1,211.288 for Russell, 23,311.309 for Dow; 70% of initial levels
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| Pricing date: | April 26, 2023
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| Settlement date: | May 1, 2023
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 0.1%
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| Cusip: | 61774XWB5
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