Published on 3/2/2024 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $500,000 7.7% contingent income securities on indexes
By Kiku Steinfeld
Chicago, March 4 – Morgan Stanley Finance LLC priced $500,000 of contingent income securities due July 2, 2026 linked to the Dow Jones industrial average and S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
Investors will receive a coupon of 7.7%, paid quarterly, if each underlying index closes at or above its 70% downside threshold on the related quarterly observation date.
If the worst performing index gains or ends above its downside threshold the payout at maturity will be par plus the contingent coupon. Investors will lose 1% for every 1% that the worst performing index declines if it finishes below its downside threshold level.
The notes are guaranteed by Morgan Stanley.
Morgan Stanley & Co. LLC is the agent.
Issuer: | Morgan Stanley Finance LLC
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Guarantor: | Morgan Stanley
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Issue: | Contingent income securities
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Underlying indexes: | Dow Jones industrial average and S&P 500 index
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Amount: | $500,000
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Maturity: | July 2, 2026
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Coupon: | 7.7%, paid quarterly, if each underlying index closes at or above its 70% downside threshold on the related quarterly observation date
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Price: | Par
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Payout at maturity: | If worst performing index finishes at or above its downside threshold level, par; 1% loss for every 1% that worst performing index declines if it finishes below its downside threshold level
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Initial level: | 33,926.74 for Dow Jones industrial average, 4,378.41 for S&P 500
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Downside thresholds: | 23,748.718 for Dow Jones industrial average, 3,064.887 for S&P 500, 70% of initial level
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Pricing date: | June 27, 2023
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Settlement date: | June 30, 2023
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Agent: | Morgan Stanley & Co. LLC
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Fees: | 0.65%
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Cusip: | 61775HAX5
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