Published on 5/8/2023 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley sells $983,000 contingent market-linked autocalls on two indexes
By Kiku Steinfeld
Chicago, May 8 – Morgan Stanley Finance LLC priced $983,000 of market-linked securities – autocallable with contingent coupon and contingent downside due Dec. 29, 2023 linked to the performance of the S&P 500 index and the Russell 2000 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 monthly interest payment at the rate of 10.5% per year if each index closes at or above the coupon barrier level, 75% of the initial share level, on the observation date for that period.
The notes will be called at par plus an interest payment if each index closes at or above the initial level on any monthly call observation date after six months.
The payout at maturity will be par plus the final interest payment if each index finishes at or above 75% 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
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Guarantor: | Morgan Stanley
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Issue: | Market linked securities – autocallable with contingent coupon and contingent downside
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Underlying indexes: | S&P 500 index, Russell 2000 index
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Amount: | $983,000
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Maturity: | Dec. 29, 2023
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Coupon: | 10.5% annual rate, payable monthly if all indexes close at or above their coupon barrier levels on the relevant observation date
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Price: | Par
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Payout at maturity: | Par plus final coupon of each index finishes at or above downside threshold; otherwise, 1% loss for every 1% decline of worst performer from its initial level
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Call: | At par plus coupon if each index closes at or above its initial level on any monthly call observation date after six months
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Initial levels: | 3,849.28 for S&P, 1,766.250 for Russell
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Coupon barriers: | 2,886.96 for S&P, 1,324.6875 for Russell; 75% of initial levels
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Downside thresholds: | 2,886.96 for S&P, 1,324.6875 for Russell; 75% of initial levels
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Pricing date: | Dec. 29, 2022
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Settlement date: | Jan. 4, 2023
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Agents: | Morgan Stanley & Co. LLC and Wells Fargo Securities, LLC
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Fees: | 0.825%
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Cusip: | 61774H5G9
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