By Wendy Van Sickle
Columbus, Ohio, April 26 – Morgan Stanley Finance LLC priced $15 million of 0% securities due Aug. 14, 2028 linked to the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
If the index finishes above the 123% upper strike threshold, the payout at maturity will be $16.09 per $10 stated principal amount plus an additional return of 0.75614% for each 1% of the initial level by which the final average index value exceeds the upper strike value, subject to a maximum payout of par plus 104%.
If the index finishes below the upper strike threshold but finishes at or above the 94% lower strike threshold, the payout at maturity will be par plus an additional return of 2.01% for each 1% of the initial level by which the final average index value exceeds the lower strike value.
If the index falls by more than 6% but not more than 26%, investors will lose 1.3% for every 1% decline beyond 6%. If the index falls by more than 26%, investors will be fully exposed to the decline.
The securities are guaranteed by Morgan Stanley.
Morgan Stanley & Co. LLC is the agent. Morgan Stanley Wealth Management is the dealer.
| Issuer: | Morgan Stanley Finance LLC
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| Guarantor: | Morgan Stanley
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| Issue: | Securities
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| Underlying index: | S&P 500 index
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| Amount: | $15 million
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| Maturity: | Aug. 14, 2028
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| Coupon: | 0%
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| Price: | Par of $10
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| Payout at maturity: | If the index finishes above the upper strike threshold, the payout at maturity will be $16.09 per $10 stated principal amount plus an additional return of 0.75614% for each 1% of the initial level by which the final average index value exceeds the upper strike value, subject to a maximum payout of par plus 104%; if the final index average is below the upper strike threshold but greater than or equal to the lower strike threshold, par plus an additional return of 2.01% for each 1% by which the final average index value exceeds the lower strike value; if the final index average is below the lower strike threshold but greater than or equal to the downside threshold, investors will lose 1.3% for every 1% decline beyond 6%; 1% loss for every 1% index decline if index falls by more than 26%
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| Initial level: | Arithmetic average of index closing level on each trading day from April 19 to May 25
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| Final level: | Arithmetic average of index closing level on each trading day from May 10, 2028 to Aug. 9, 2028
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| Upper strike threshold: | 123% of initial level
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| Middle strike threshold: | 100% of initial level
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| Lower strike threshold: | 90% of initial level
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| Pricing date: | April 21
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| Settlement date: | April 26
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| Agent: | Morgan Stanley & Co. LLC
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| Dealer: | Morgan Stanley Wealth Management
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| Fees: | 0.25%
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| Cusip: | 61773Y573
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