Published on 6/6/2022 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $575,000 contingent income autocalls on Select Sector funds
By Kiku Steinfeld
Chicago, June 6 – Morgan Stanley Finance LLC priced $575,000 of contingent income autocallable securities due Feb. 21, 2023 linked to Energy Select Sector SPDR fund, Utilities Select Sector SPDR fund and Health Care Select Sector SPDR fund, according to a 424B2 filing with the Securities and Exchange Commission.
Investors will receive a coupon of 5.9%, paid monthly, if each underlying fund closes at or above its 60% downside threshold on the related monthly observation date.
The securities will be called automatically starting May 19, 2022 at par if the price of each underlying fund is greater than or equal to its initial price on any monthly call determination date.
At maturity the payout will be par unless the worst performing fund closes below its 60% downside threshold, in which case investors will be fully exposed to the 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
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| Guarantor: | Morgan Stanley
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| Issue: | Contingent income autocallable securities
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| Underlying ETFs: | Energy Select Sector SPDR fund, Utilities Select Sector SPDR fund and Health Care Select Sector SPDR fund
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| Amount: | $575,000
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| Maturity: | Feb. 21, 2023
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| Coupon: | 5.9%, paid monthly, if each underlying fund closes at or above its 60% downside threshold on the related monthly observation date
|
| Price: | Par
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| Payout at maturity: | Par unless the worst performing fund closes below its downside threshold level, in which case investors will be fully exposed to the decline in the worst performing underlying fund
|
| Call: | Automatically starting May 19, 2022 at par if the price of each underlying fund is greater than or equal to its initial price on any monthly call determination date
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| Initial levels: | $58.03 for Energy, $67.53 for Utilities, $132.98 for Health Care
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| Downside thresholds: | $34.818 for Energy, $40.518 for Utilities, $79.788 for Health Care, 60% of initial levels
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| Pricing date: | Nov. 16, 2021
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| Settlement date: | Nov. 19, 2021
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 0.25%
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| Cusip: | 61773HHE2
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