Published on 3/7/2024 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley sells $2.17 million callable contingent market-linked notes on indexes
By William Gullotti
Buffalo, N.Y., March 7 – Morgan Stanley Finance LLC priced $2.17 million of market-linked securities – callable with contingent coupon and contingent downside due July 29, 2026 linked to the performance of the Dow Jones industrial average, the Russell 2000 index and the Nasdaq-100 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by Morgan Stanley.
The notes will pay a contingent quarterly interest payment at the rate of 8.6% per year if each index closes at or above the coupon barrier level, 70% of the initial level, on the observation date for that period.
The notes may be called at par plus any interest payment otherwise due on any quarterly observation date.
The payout at maturity will be par plus the final interest payment if each index finishes at or above its 70% downside threshold.
Otherwise, investors will be fully exposed to the decline of the worst performer from its initial level.
Morgan Stanley & Co. LLC and Wells Fargo Securities, LLC are the agents.
| Issuer: | Morgan Stanley Finance LLC
|
| Guarantor: | Morgan Stanley
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| Issue: | Market linked securities – callable with contingent coupon and contingent downside
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| Underlying indexes: | Dow Jones industrial average, Russell 2000 index, Nasdaq-100 index
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| Amount: | $2,166,000
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| Maturity: | July 29, 2026
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| Coupon: | 8.6% annual rate, payable quarterly if all indexes close at or above their coupon barrier levels on the relevant observation date
|
| Price: | Par
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| Payout at maturity: | Par plus final coupon of each index finishes at or above its downside threshold; otherwise, 1% loss for every 1% decline of worst performer from its initial level
|
| Call option: | At par plus any coupon otherwise due on any quarterly observation date
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| Initial levels: | 38,150.3 for Dow, 1,947.342 for Russell, 17,137.24 for Nasdaq
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| Coupon barriers: | 26,705.21 for Dow, 1,363.1394 for Russell, 11,996.068 for Nasdaq; 70% of initial levels
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| Downside thresholds: | 26,705.21 for Dow, 1,363.1394 for Russell, 11,996.068 for Nasdaq; 70% of initial levels
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| Pricing date: | Jan. 31
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| Settlement date: | Feb. 5
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| Agents: | Morgan Stanley & Co. LLC and Wells Fargo Securities, LLC
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| Fees: | 2.325%
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| Cusip: | 61771WQV3
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