By William Gullotti
Buffalo, N.Y., Feb. 1 – Morgan Stanley Finance LLC priced $2.04 million of contingent income autocallable securities due Jan. 29, 2026 linked to the stock performance of Lennar Corp., Deere & Co. and Freeport-McMoRan Inc., according to a 424B2 filing with the Securities and Exchange Commission.
Investors will receive a coupon of 10%, paid monthly, if each underlying stock closes at or above its 40% downside threshold on the related monthly observation date. Previously unpaid coupons, if any, will be automatically included whenever a coupon is paid.
The securities will be called automatically at par plus the coupon if the closing price of each underlying stock is greater than or equal to its initial price any monthly call determination date starting July 31, 2023.
At maturity, the payout will be par plus the final coupon unless the worst performing stock finishes below its 40% downside threshold level, in which case investors will be fully exposed to the decline of the worst performing stock.
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 autocallable securities
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| Underlying stocks: | Lennar Corp., Deere & Co. and Freeport-McMoRan Inc.
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| Amount: | $2.04 million
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| Maturity: | Jan. 29, 2026
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| Coupon: | 10%, paid monthly, if each underlying stock closes at or above its 40% downside threshold on the related monthly observation date; coupon payment events will automatically include any previously unpaid coupons
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| Price: | Par
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| Payout at maturity: | Par plus final coupon unless the worst performing stock finishes below its downside threshold level, in which case investors will be fully exposed to the decline in the worst performing stock from initial level
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| Call: | Automatically at par plus the coupon if the closing price of each underlying stock is greater than or equal to its initial price any monthly call determination date starting July 31, 2023
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| Initial levels: | $421.20 for Deere, $45.45 for Freeport-McMoRan, $100.02 for Lennar
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| Downside thresholds: | $168.48 for Deere, $18.18 for Freeport-McMoRan, $40.008 for Lennar, 40% of initial level
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| Pricing date: | Jan. 26
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| Settlement date: | Jan. 31
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 3.75%
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| Cusip: | 61774TRG9
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