By Wendy Van Sickle
Columbus, Ohio, Feb. 7 – Morgan Stanley Finance LLC priced $694,000 of 0% contingent minimum repayment lock-in securities due Feb. 5, 2025 linked to the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by Morgan Stanley.
The notes provide a minimum payout at maturity that starts at $8.50 per $10.00 principal amount and will increase if a lock-in event occurs. A lock-in event occurs if the index’s closing level on any annual observation date is greater than the initial index level and the highest closing index level achieved on any previous observation date.
If a lock-in event occurs, the minimum payment at maturity will increase by an amount reflecting 85% of the percentage appreciation in the index’s closing level on the relevant observation date relative to the initial index level or the higher index closing level achieved on a prior observation date, even if the index has depreciated on subsequent annual observation dates or the valuation date.
However, the occurrence of a lock-in event will not necessarily increase the payment at maturity, because investors will receive at maturity only the greater of the final lock-in amount and the upside payment, and so the final lock-in amount will not be combined with the upside payment.
Payout at maturity
If the final index level is greater than the initial index level, the payout at maturity will be the greater of (a) par plus the index return and (b) the final lock-in amount.
If the final index level is less than or equal to the initial index level, the payout will be the greater of (a) par plus the quotient of the final index level divided by the initial index level and (b) the final lock-in amount.
The final lock-in amount will be the greater of (a) $10.00 multiplied by the lock-in payment factor and (b) $8.50.
The lock-in payment factor is 85% of the quotient of the highest closing level of the index achieved on any annual observation date divided by the initial index level.
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 minimum repayment lock-in securities
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| Underlying index: | S&P 500
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| Amount: | $694,000
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| Maturity: | Feb. 5, 2025
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| Coupon: | 0%
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| Price: | Par of $1,000
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| Payout at maturity: | If a lock-in event has occurred, par plus greater of (a) final index return and (b) par plus 0.85 times percentage appreciation in the index’s closing level on the relevant observation date relative to the initial index level or the higher index closing level achieved on a prior observation date; if lock-in event has not occurred par plus index return, subject to minimum payout of 85% of par
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| Lock-in event: | Index’s closing level on any annual observation date is greater than the initial index level and the highest closing index level achieved on any previous observation date
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| Initial index level: | 2,704.1
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| Pricing date: | Jan. 31
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| Settlement date: | Feb. 5
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 3.5%
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| Cusip: | 61768W533
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