New Issue: Morgan Stanley sells $2.27 million callable contingent income securities on indexes

By William Gullotti

Buffalo, N.Y., Oct. 29 – Morgan Stanley Finance LLC sold $2.27 million of callable contingent income securities due July 30, 2026 tied to the worst performing of the Nasdaq-100 index and the Euro Stoxx 50 index, according to a 424B2 filing with the Securities and Exchange Commission.

The notes will pay a contingent quarterly coupon at the rate of 7.6% per year if each index closes at or above its coupon threshold level, 80% 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 beginning Feb. 1, 2022.

If the notes are not called and each index 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
Issue:	Callable contingent income securities
Underlying indexes:	Nasdaq-100 index, Euro Stoxx 50 index
Amount:	$2,267,000
Maturity:	July 30, 2026
Coupon:	7.6% per year, payable quarterly if each index closes at or above its coupon threshold level on the related determination date
Price:	Par
Payout at maturity:	Par plus final coupon if each index 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 starting Feb. 1, 2022
Initial levels:	14,956.97 for Nasdaq, 4,064.83 for Stoxx
Coupon threshold levels:	11,965.576 for Nasdaq, 3,251.864 for Stoxx; 80% of initial levels
Downside threshold levels:	8,974.182 for Nasdaq, 2,438.898 for Stoxx; 60% of initial levels
Pricing date:	July 27
Settlement date:	July 30
Agent:	Morgan Stanley & Co. LLC
Fees:	0.5%
Cusip:	61773FJN4

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