Chicago, Feb. 15 – Morgan Stanley Finance LLC priced $34.42 million of contingent coupon securities with one-time automatic redemption feature due May 4, 2026 linked to the S&P 500 Low Volatility High Dividend index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by Morgan Stanley.
An 11.02% contingent monthly coupon could be paid only during the first year of the securities. The coupon will be paid if the index stays above 90% of its initial level on each day during the month. If the closing level on any day during the monitoring period is below 90% of its initial level, the coupon will not be paid for that period or any other period going forward.
The notes will be automatically called at par if the index has not dipped below the 90% trigger level at any point during the first year.
If the notes are not called, the payout at maturity will be par plus the return and a 10% buffer multiplied by a 1.1111% leverage factor. Investors will lose some or all of their investment if the index return is below 90% of the initial level.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley Finance LLC
|
| Guarantor: | Morgan Stanley
|
| Issue: | Contingent coupon securities with one-time automatic redemption feature
|
| Underlying index: | S&P 500 Low Volatility High Dividend index
|
| Amount: | $34,419,000
|
| Maturity: | May 4, 2026
|
| Coupon: | 0%
|
| Price: | Par
|
| Payout at maturity: | Par plus index return plus 10% buffer multiplied by 1.1111% leverage factor
|
| Initial level: | 7,733.56
|
| Trigger level: | 6,960.204, 90% of initial level
|
| Buffer: | 10%
|
| Pricing date: | April 29, 2022
|
| Settlement date: | May 4, 2022
|
| Agent: | Morgan Stanley & Co. LLC
|
| Fees: | 0%
|
| Cusip: | 61773QR68
|
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