Morgan Stanley changes upside payment for jump notes linked to indexes

By Devika Patel

Knoxville, Tenn., July 8 – Morgan Stanley Finance LLC changed the upside payment for its upcoming 0% dual directional trigger jump securities due Aug. 5, 2024 linked to the lesser performing of the Dow Jones industrial average and the Russell 2000 index, according to an FWP with the Securities and Exchange Commission.

The notes will be guaranteed by Morgan Stanley.

The upside payment is now expected to be 33% or greater. The exact upside payment will be set at pricing. When plans for the offering were first announced, the upside payment was expected to be at least 45%.

If the lesser-performing index finishes at or above its initial level, the payout at maturity will be par plus the greater of the lesser-performing index’s return and the upside payment.

If the lesser-performing index falls but finishes at or above its downside threshold level, 70% of its initial index level, the payout will be par plus the absolute value of the lesser-performing index’s return.

If the lesser-performing index finishes below its downside threshold level, investors will lose 1% for every 1% that the lesser-performing index declines from its initial level.

Morgan Stanley & Co. LLC is the agent.

The notes (Cusip: 61769HJQ9) will price on July 31 and settle on Aug. 5.

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