New Issue: Morgan Stanley sells $680,000 trigger PLUS on basket of indexes, ETFs

By Kiku Steinfeld

Chicago, May 15 – Morgan Stanley Finance LLC priced $680,000 of 0% trigger Performance Leveraged Upside Securities due Jan. 11, 2028 linked a weighted basket of two indexes and two exchange-traded funds, according to a 424B2 filing with the Securities and Exchange Commission.

The notes will be guaranteed by Morgan Stanley.

The basket consists of the SPDR S&P 500 ETF trust (35% weight), the Russell 2000 index (35% weight), the iShares MSCI EAFE ETF (20% weight) and the iShares MSCI Emerging Markets ETF (10% weight).

If the basket finishes above its initial level, the payout at maturity will be par of $10 plus 1.4137 times the gain.

Investors will receive par if the basket falls by up to 35% and will be fully exposed to any losses if the basket finishes below its 65% trigger level.

Morgan Stanley & Co. LLC is the agent.

Issuer:	Morgan Stanley Finance LLC
Guarantor:	Morgan Stanley
Issue:	Trigger Performance Leveraged Upside Securities
Basket components:	SPDR S&P 500 ETF trust (35% weight), Russell 2000 index (35% weight), iShares MSCI EAFE ETF (20% weight) and iShares MSCI Emerging Markets ETF (10% weight)
Amount:	$680,000
Maturity:	Jan. 11, 2028
Coupon:	0%
Price:	Par
Payout at maturity:	Par plus 127.5% of any basket gain; if basket falls by up to 35%, par; otherwise, 1% loss per 1% basket decline
Initial level:	1,792.800 for Russell, $388.08 for S&P ETF, $68.13 for EAFE ETF, $40.07 for EM ETF
Trigger level:	65% of initial level
Pricing date:	Jan. 6, 2023
Settlement date:	Jan. 11, 2023
Agent:	Morgan Stanley & Co. LLC
Fees:	0.625%
Cusip:	61774TMU3

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