By William Gullotti
Buffalo, N.Y., Oct. 8 – Morgan Stanley Finance LLC priced $4.4 million of trigger callable contingent yield notes with quarterly coupon observation due Aug. 25, 2026 linked to the worst performing of the SPDR S&P 500 ETF Trust, the iShares Russell 2000 ETF and the iShares MSCI Emerging Markets ETF, 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 coupon at an annual rate of 8.37% if each ETF closes at or above its coupon barrier level, 70% of its initial level, on the relevant observation date.
The notes will be callable at par of $10 plus any coupon due on any quarterly observation date other than the final one.
If the notes are not called and each ETF finishes at or above its downside threshold level, 65% of its initial level, the payout at maturity will be par plus any final coupon due. Otherwise, investors will lose 1% for every 1% decline of the least-performing ETF.
UBS Financial Services Inc. and Morgan Stanley & Co. LLC are the agents.
| Issuer: | Morgan Stanley Finance LLC
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| Guarantor: | Morgan Stanley
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| Issue: | Trigger callable contingent yield notes with quarterly coupon observation
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| Underlying ETFs: | SPDR S&P 500 ETF Trust, iShares Russell 2000 ETF, iShares MSCI Emerging Markets ETF
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| Amount: | $4.4 million
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| Maturity: | Aug. 25, 2026
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| Coupon: | 8.37% per year, payable quarterly if each ETF closes at or above its barrier level on the corresponding observation date
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| Price: | Par of $10
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| Payout at maturity: | Par plus any coupon due unless any ETF finishes below downside threshold level, in which case 1% loss for every 1% decline of worst performing ETF from its initial level
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| Call option: | At par plus any coupon due on any quarterly observation date other than final one
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| Initial levels: | $439.86 for S&P ETF, $211.94 for Russell ETF, $49.54 for EM ETF
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| Coupon barrier levels: | $307.90 for S&P ETF, $148.36 for Russell ETF, $34.68 for EM ETF; 70% of initial levels
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| Downside thresholds: | $285.91 for S&P ETF, $137.76 for Russell ETF, $32.20 for EM ETF; 65% of initial levels
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| Strike date: | Aug. 19
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| Pricing date: | Aug. 20
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| Settlement date: | Aug. 25
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| Agents: | UBS Financial Services Inc. and Morgan Stanley & Co. LLC
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| Fees: | 1.5%
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| Cusip: | 61773E171
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