Chicago, Sept. 12 – Morgan Stanley Finance LLC priced $5 million of callable contingent income securities due Sept. 3, 2026 linked to the worst performing of the Real Estate Select Sector SPDR fund, Energy Select Sector SPDR fund and SPDR S&P Biotech ETF, according to a 424B2 filing with the Securities and Exchange Commission.
Investors will receive a coupon of 14.4%, paid monthly, if each underlying fund closes at or above its 60% downside threshold on the related monthly observation date.
The securities may be called starting March 5, 2024 at par on any quarterly call 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: | Callable contingent income securities
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| Underlying ETFs: | Real Estate Select Sector SPDR Fund, Energy Select Sector SPDR Fund and SPDR S&P Biotech ETF
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| Amount: | $5 million
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| Maturity: | Sept. 3, 2026
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| Coupon: | 14.4% annual rate, paid monthly, if each underlying fund closes at or above its 60% downside threshold on the related monthly observation date
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| 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
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| Call: | Starting March 5, 2024 at par on any quarterly call date
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| Initial levels: | $79.68 for biotech, $88.86 for energy, $37.29 for real estate
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| Downside thresholds: | $47.808 for biotech, $53.316 for energy, $22.374 for real estate, 60% of initial levels
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| Pricing date: | Sept. 6
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| Settlement date: | Sept. 11
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 0.5%
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| Cusip: | 61775HS40
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