By William Gullotti
Buffalo, N.Y., July 2 – Morgan Stanley Finance LLC priced $3 million of 0% principal-at-risk securities due Nov. 10, 2025 tied to the Dow Jones industrial average, according to a 424B2 filing with the Securities and Exchange Commission.
The securities are guaranteed by Morgan Stanley.
If the final level the index is greater than or equal to the upper strike level, 120% of the initial value, the payout at maturity will be par plus 28.1% plus 1.8 times the index gain minus 120%, capped at a maximum return of 164.1%. For example, if the final value is 140% of the initial value, the payout would be $12.81 plus – 1.8 times – 140% minus 120%, so 20%, so 1.8 times 20 equals 36 – therefore the payout would be, $12.81 plus $3.60 equals $16.41, the cap.
If the final level is greater than or equal to the lower strike level, the initial average level, but less than the upper strike level, the payout will be par plus 140.5% of the index gain.
If the final level is less than the lower strike level but greater than or equal to the buffer level, 90% of the initial average, the payout at maturity will be par.
If the final level is less than the buffer level but greater than or equal to the downside threshold, 70% of the initial average, investors will lose 1.5% for every 1% decline beyond the 10% buffer. Otherwise, investors will lose 1% for every 1% decline of the index from its initial average.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley Finance LLC
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| Guarantor: | Morgan Stanley
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| Issue: | Securities
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| Underlying index: | Dow Jones industrial average
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| Amount: | $3 million
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| Maturity: | Nov. 10, 2025
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| Coupon: | 0%
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| Price: | Par of $10
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| Payout at maturity: | If the final level is greater than or equal to the upper strike level, par plus 28.1% plus 1.8 times the gain of the index minus 120%, capped at a maximum return of 164.1%; if the final level is greater than or equal to the lower strike level but below the upper strike level, par plus 140.5% of the index gain; if the index declines no more than 10%, par; if the index declines below the buffer but finishes at or above the downside threshold, 1.5% loss for each 1% decline beyond 10% buffer; otherwise, investors will lose 1% for every 1% decline from the initial average
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| Initial level: | Determined by taking arithmetic average of the closing values of the index for the three-month period from June 24 to Sept. 22
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| Final level: | Determined by taking arithmetic average of the closing values of the index for the three-month period from Aug. 8, 2025 to Nov. 5, 2025
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| Upper strike level: | 120% of initial level
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| Lower strike level: | 100% of initial level
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| Buffer level: | 90% of initial level
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| Downside threshold: | 70% of initial level
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| Pricing date: | June 28
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| Settlement date: | July 1
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| Agent: | Morgan Stanley & Co. LLC with Morgan Stanley Smith Barney LLC as dealer
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| Fees: | 0.5%
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| Cusip: | 61772Y335
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