By Kiku Steinfeld
Chicago, Nov. 1 – Morgan Stanley Finance LLC priced $5.33 million of contingent income autocallable securities due March 30, 2023 linked to the shares of the SPDR S&P Biotech ETF and the Energy Select Sector SPDR Fund, according to a 424B2 filed with the Securities and Exchange Commission.
The securities are guaranteed by Morgan Stanley.
The notes will pay a contingent quarterly coupon at an annual rate of 10.25% if each ETF closes at or above its 70% coupon barrier on the observation date for that quarter.
The notes will be called at par plus coupon if each ETF closes at or above its initial level on any quarterly review date after six months.
The payout at maturity will be par plus the final coupon unless any ETF finishes below its 70% downside threshold, in which case investors will be fully exposed to the decline of the worst performer from its initial level.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley Finance LLC
|
| Issue: | Contingent income autocallable securities
|
| Guarantor: | Morgan Stanley
|
| Underlying ETFs: | SPDR S&P Biotech ETF, Energy Select Sector SPDR Fund
|
| Amount: | $5,329,000
|
| Maturity: | March 30, 2023
|
| Coupon: | 10.25% annualized, payable quarterly if each ETF closes at or above coupon barrier on review date for that quarter
|
| Price: | Par
|
| Payout at maturity: | If each ETF finishes at or above downside threshold, par plus the final coupon; otherwise, 1% loss for each 1% decline of worst performing ETF from its initial level
|
| Call: | At par plus coupon if each ETF closes at or above its initial level on any quarterly call date after six months
|
| Initial levels: | $131.91 for Biotech, $52.71 for Energy
|
| Coupon barrier levels: | $92.337 for Biotech, $36.897 for Energy; 70% of initial levels
|
| Downside thresholds: | $92.337 for Biotech, $36.897 for Energy; 70% of initial levels
|
| Pricing date: | Sept. 27
|
| Settlement date: | Sept. 30
|
| Agent: | Morgan Stanley & Co. LLC
|
| Fees: | 2.5%
|
| Cusip: | 61773FWJ8
|
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