By Kiku Steinfeld
Chicago, Feb. 26 – Morgan Stanley Finance LLC priced $8.76 million of callable contingent coupon notes due Feb. 24, 2023 linked to the least performing of the SPDR S&P Oil & Gas Exploration & Production exchange-traded fund and the SPDR S&P 500 ETF trust, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annual rate of 10% if each underlying fund closes at or above its 60% coupon barrier on the determination date for that quarter.
The notes are callable at par plus the contingent coupon on any determination date after six months.
The payout at maturity will be par plus the final contingent coupon unless any fund finishes below its 60% barrier, in which case investors will lose 1% for each 1% decline of the worst performing fund.
The notes are guaranteed by Morgan Stanley.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley Finance LLC
|
| Guarantor: | Morgan Stanley
|
| Issue: | Contingent income callable securities
|
| Amount: | $8,762,000
|
| Underlying funds: | SPDR S&P Oil & Gas Exploration & Production ETF, SPDR S&P 500 ETF trust
|
| Maturity: | Feb. 24, 2023
|
| Coupon: | 10% annualized, payable quarterly that each index closes at or above 60% coupon barrier on observation date for that quarter
|
| Price: | Par
|
| Payout at maturity: | Par plus contingent coupon if each index finishes at or above 60% barrier; otherwise, 1% loss for each 1% decline of worst performing index
|
| Call option: | At par plus contingent coupon on any quarterly determination date after six months
|
| Initial levels: | $336.95 for trust, $19.20 for Oil & Gas
|
| Barrier levels: | $202.17 for trust, $11.52 for Oil & Gas; 60% of initial levels
|
| Pricing date: | Feb. 21
|
| Settlement date: | Feb. 25
|
| Agent: | Morgan Stanley & Co. LLC
|
| Fees: | 1.625%
|
| Cusip: | 61770FML7
|
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