Published on 2/2/2022 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley sells $250,000 contingent income securities on two ETFs
By William Gullotti
Buffalo, N.Y., Feb. 2 – Morgan Stanley Finance LLC priced $250,000 of contingent income securities due Sept. 6, 2023 tied to the performance of the Energy Select Sector SPDR Fund and the VanEck Vectors Gold Miners ETF, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a quarterly contingent coupon at the rate of 9.75% per year if each ETF closes at or above its coupon barrier level, 70% of its initial level, on the observation date that period.
If each ETF finishes at or above its downside threshold level, 70% 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 from its initial level.
The notes are guaranteed by Morgan Stanley.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley Finance LLC
|
| Guarantor: | Morgan Stanley
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| Issue: | Contingent income securities
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| Underlying funds: | Energy Select Sector SPDR Fund, VanEck Vectors Gold Miners ETF
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| Amount: | $250,000
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| Maturity: | Sept. 6, 2023
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| Coupon: | 9.75% per year, payable quarterly if each ETF closes at or above coupon barrier level on observation date that period
|
| Price: | Par
|
| Payout at maturity: | If each ETF finishes at or above the downside threshold, par plus the final coupon; otherwise, full exposure to decline of lowest-performing ETF from its initial level
|
| Initial levels: | $48.40 for SPDR, $32.60 for VanEck
|
| Coupon barriers: | $33.88 for SPDR, $22.82 for VanEck; 70% of initial levels
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| Downside threshold levels: | $33.88 for SPDR, $22.82 for VanEck; 70% of initial levels
|
| Pricing date: | Aug. 31
|
| Settlement date: | Sept. 3
|
| Agent: | Morgan Stanley & Co. LLC
|
| Fees: | 0.5%
|
| Cusip: | 61773FNB5
|
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