By Wendy Van Sickle
Columbus, Ohio, March 30 – Morgan Stanley Finance LLC priced $15 million of 0% securities due April 3, 2028 linked to the Dow Jones industrial average, according to a 424B2 filing with the Securities and Exchange Commission.
If the index gain is greater than or equal to 35%, the payout at maturity will be $16.10 + [$10 × (91% of the index upper strike return)] per $10 security, subject to a maximum payout of $19.74 per security. The index upper strike return is the quotient of (a) the final index value minus the upper strike index value, 135% of the initial index level, divided by (b) the initial index level.
If the index gain is less than 35% but greater than or equal to negative 15%, the payout at maturity will be $10 + [$10 × (122% of the index lower strike return)] per $10 security. The index lower strike return is the quotient of (a) the final index value minus the lower strike index value, 100% of the initial index level, divided by (b) the initial index level.
If the index return is between negative 15% and negative 35%, the payout will be $10 + [$10 × (index lower strike return × 1.75].
If the index falls by more than 35%, investors will be fully exposed to the loss.
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: | $15 million
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| Maturity: | April 3, 2028
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| Coupon: | 0%
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| Price: | Par of $10
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| Payout at maturity: | If index gain is greater than or equal to 35%, $16.10 + [$10 × (91% of index upper strike return)], subject to maximum payout of $19.74; index upper strike return is quotient of (a) final index value minus upper strike index value, 135% of initial index level, divided by (b) initial index level; if index gain is less than 35% but greater than or equal to negative 15%, $11.3005 + [$10 × (122% of index lower strike return)]; index lower strike return is quotient of (a) final index value minus lower strike index value, 100% of initial index level, divided by (b) initial index level; if index return is between negative 15% and negative 35%, $10 + [$10 × (index lower strike return × 1.75]; full exposure to losses if index falls by more than 35%
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| Initial level: | Average of index closing levels over three-month period from March 23 to and including April 18
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| Final level: | Average of index closing levels over the three-month period from Dec. 30, 2027 to and including March 29, 2028
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| Pricing date: | March 25
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| Settlement date: | March 30
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 0.25%
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| Cusip: | 61773Y284
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