Published on 8/21/2023 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley sells $1 million callable contingent income buffered notes on indexes
By William Gullotti
Buffalo, N.Y., Aug. 21 – Morgan Stanley Finance LLC priced $1 million of callable contingent income buffered securities due Aug. 19, 2025 linked to the least performing of the Nasdaq-100 index, the Dow Jones industrial average and the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by Morgan Stanley.
The notes will pay a contingent monthly coupon at the rate of 9% per year if each index closes at or above its coupon barrier level, 70% of its initial level, on the corresponding observation date.
The notes may be called at par plus any coupon due on any quarterly observation date.
If each index finishes at or above its buffer level, 80% of its initial level, the payout at maturity will be par plus the final coupon.
Otherwise, investors will lose 1% for every 1% decline of the worst performer beyond 20%.
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 buffered securities
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| Underlying indexes: | Nasdaq-100 index, Russell 2000 index, Dow Jones industrial average
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| Amount: | $1 million
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| Maturity: | Aug. 19, 2025
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| Coupon: | 9% per year, payable monthly if each index closes at or above coupon barrier level on the observation date
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| Price: | Par
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| Payout at maturity: | Par plus final coupon if each index finishes at or above buffer level; otherwise, investors will lose 1% for every 1% decline of the worst performer below 20%
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| Call: | At par plus any coupon due on any quarterly observation date
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| Initial levels: | 35,307.63 for Dow, 15,205.59 for Nasdaq, 1,920.493 for Russell
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| Coupon barrier levels: | 24,715.341 for Dow, 10,643.913 for Nasdaq, 1,344.345 for Russell; 70% of initial levels
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| Buffer levels: | 28,246.104 for Dow, 12,164.472 for Nasdaq, 1,536.394 for Russell; 80% of initial levels
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| Pricing date: | Aug. 14
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| Settlement date: | Aug. 17
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 0.55%
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| Cusip: | 61775HUP0
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