By William Gullotti
Buffalo, N.Y., April 23 – Morgan Stanley Finance LLC priced $1.55 million of market-linked securities – callable with contingent coupon and contingent downside due April 15, 2027 linked to the performance of the Health Care Select Sector SPDR Fund, the Energy Select Sector SPDR Fund and the Technology Select Sector SPDR Fund, according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by Morgan Stanley.
The notes will pay a contingent quarterly interest payment at the rate of 10.25% per year if each ETF closes at or above the coupon barrier level, 65% of the initial level, on the observation date for that period.
After six months, the notes may be called at par plus any interest payment otherwise due on any quarterly observation date.
The payout at maturity will be par plus the final interest payment if each ETF finishes at or above its 65% downside threshold.
Otherwise, investors will be fully exposed to the decline of the worst performer from its initial level.
Morgan Stanley & Co. LLC and Wells Fargo Securities, LLC are the agents.
Issuer: | Morgan Stanley Finance LLC
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Guarantor: | Morgan Stanley
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Issue: | Market linked securities – callable with contingent coupon and contingent downside
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Underlying funds: | Energy Select Sector SPDR Fund, Technology Select Sector SPDR Fund, Health Care Select Sector SPDR Fund
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Amount: | $1.55 million
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Maturity: | April 15, 2027
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Coupon: | 10.25% annual rate, payable quarterly if all ETFs close at or above their coupon barrier levels on the relevant observation date
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Price: | Par
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Payout at maturity: | Par plus final coupon if each ETF finishes at or above downside threshold; otherwise, 1% loss for every 1% decline of worst performer from its initial level
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Call option: | At par plus any coupon otherwise due on any quarterly observation date after six months
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Initial levels: | $97.72 for Energy, $208.80 for Technology, $141.01 for Health Care
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Coupon barriers: | $63.518 for Energy, $135.72 for Technology, $91.6565 for Health Care; 65% of initial levels
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Downside thresholds: | $63.518 for Energy, $135.72 for Technology, $91.6565 for Health Care; 65% of initial levels
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Pricing date: | April 11
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Settlement date: | April 16
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Agents: | Morgan Stanley & Co. LLC and Wells Fargo Securities, LLC
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Fees: | 2.325%
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Cusip: | 61776LPC5
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