Published on 2/9/2023 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $1.33 million autocallable jump securities on three indexes
By William Gullotti
Buffalo, N.Y., Feb. 9 – Morgan Stanley Finance LLC priced $1.33 million of jump securities with autocallable feature due Aug. 9, 2024 linked to the Dow Jones industrial average, the Russell 2000 index and the Nasdaq-100 index, according to a 424B2 filing with the Securities and Exchange Commission.
The securities will be called automatically at par plus an annualized 7.75% call premium if each index closes at or above its call level on any monthly valuation date starting Feb. 7, 2024. Call level starts at 100% of initial level and steps down by 583 basis points with each subsequent valuation date.
If each index finishes at or above its 75% buffer level, the payout at maturity will be par plus 11.625%.
If the worst performer finishes below its buffer but at or above its 65% digital threshold, the payout will be par plus the 11.625% digital payment minus 1.333% for each 1% decline of that index below 25%.
Otherwise, investors will lose 1.333% for each 1% decline of the worst performer beyond 25%.
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: | Jump securities with autocallable feature
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| Underlying indexes: | Dow Jones industrial average, Russell 2000 index and Nasdaq-100 index
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| Amount: | $1,325,000
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| Maturity: | Aug. 9, 2024
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| Coupon: | 0%
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| Price: | Par
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| Payout at maturity: | If each index finishes at or above buffer level, par plus 11.625%; if worst performer finishes below buffer level but at or above digital threshold, par plus 11.625% digital payment less 1.333% for each 1% decline of worst performer below 25%; otherwise, lose 1.333% for each 1% decline of the worst performer beyond 25%
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| Call: | Automatically at par plus an annualized 7.75% call premium if each index closes at or above call level on any monthly valuation date after one year; call level starts at 100% of initial level and steps down by 583 bps with each subsequent valuation date
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| Initial levels: | 33,891.02 for Dow, 12,464.51 for Nasdaq, 1,957.716 for Russell
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| Buffer levels: | 25,418.265 for Dow, 9,348.383 for Nasdaq, 1,468.287 for Russell; 75% of initial levels
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| Digital thresholds: | 22,029.163 for Dow, 8,101.932 for Nasdaq, 1,272.515 for Russell; 65% of initial levels
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| Pricing date: | Feb. 6
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| Settlement date: | Feb. 9
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 0.1%
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| Cusip: | 61774TYL0
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