By William Gullotti
Buffalo, N.Y., Sept. 22 – Morgan Stanley Finance LLC sold $7.54 million of callable contingent income securities due March 20, 2024 tied to the worst performing of the SPDR S&P 500 ETF Trust, the iShares MSCI EAFE ETF and the iShares Russell 2000 ETF, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at the rate of 5.7% per year if each ETF closes at or above its coupon threshold level, 70% of its initial level, on the related determination date.
The notes will be callable at par plus any coupon due on any quarterly observation date.
If the notes are not called and each ETF finishes at or above its coupon threshold, the payout at maturity will be par plus the final coupon.
If the worst performer falls below the coupon threshold but finishes at or above its 60% downside threshold, the payout at maturity will be par. Otherwise, investors will lose 1% for every 1% decline of the worst performer from its initial level.
The notes are guaranteed by Morgan Stanley.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley Finance LLC
|
| Guarantor: | Morgan Stanley
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| Issue: | Callable contingent income securities
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| Underlying funds: | SPDR S&P 500 ETF Trust, iShares MSCI EAFE ETF, iShares Russell 2000 ETF
|
| Amount: | $7,543,000
|
| Maturity: | March 20, 2024
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| Coupon: | 5.7% per year, payable quarterly if each ETF closes at or above its coupon threshold level on the related determination date
|
| Price: | Par
|
| Payout at maturity: | Par plus final coupon if each ETF finishes at or above coupon threshold; if the worst performer declines below coupon threshold but finishes at or above downside threshold, par; otherwise, investors will lose 1% for every 1% decline of the worst performer from its initial level
|
| Call option: | At par plus any coupon due on any quarterly observation date
|
| Initial levels: | $447.88 for S&P ETF, $222.03 for Russell ETF, $81.70 for EAFE ETF
|
| Coupon threshold levels: | $313.516 for S&P ETF, $155.421 for Russell ETF, $57.19 for EAFE ETF; 70% of initial levels
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| Downside threshold levels: | $268.728 for S&P ETF, $133.218 for Russell ETF, $49.02 for EAFE ETF; 60% of initial levels
|
| Pricing date: | Sept. 15
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| Settlement date: | Sept. 20
|
| Agent: | Morgan Stanley & Co. LLC
|
| Fees: | 1.835%
|
| Cusip: | 61773FF24
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