Morgan Stanley to price autocallable jump securities tied to indexes

By Sarah Lizee

Olympia, Wash., Oct. 23 – Morgan Stanley Finance LLC plans to price 0% jump securities with autocallable feature due Oct. 31, 2025 linked to the worst performing of the S&P 500 index, the Dow Jones industrial average and the Russell 2000 index, according to an FWP filing with the Securities and Exchange Commission.

The notes will be guaranteed by Morgan Stanley.

The notes will be automatically called at par plus a call premium if each index closes at or above its call threshold level on any annual determination date. The call premium is expected to be at least 11.5% per year.

The call threshold will be 92% of each index’s initial level for the first five determination dates and 98% of each index’s initial level for the last two determination dates.

If the notes have not previously been redeemed and the final level of each index is greater than or equal to its call threshold level, the payout will be par plus 69%.

If the final level of any index is less than its call threshold level but the final level of each index is greater than or equal to its downside threshold level, 75% of its initial level, the payout will be par.

If the final level of any index is less than its downside threshold level, investors will lose 1% for every 1% that the worst-performing index declines from its initial level.

Morgan Stanley & Co. LLC is the agent.

The notes are expected to price Oct. 24.

The Cusip number is 61769HC94.

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