Published on 8/20/2023 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $1.24 million 13% contingent income autocalls on indexes, ETF
By Kiku Steinfeld
Chicago, Aug. 21 – Morgan Stanley Finance LLC priced $1.24 million of contingent income autocallable securities due Feb. 27, 2025 linked to the Nasdaq-100 index, S&P 500 index and Energy Select Sector SPDR Fund, according to a 424B2 filing with the Securities and Exchange Commission.
Investors will receive a coupon of 13%, paid quarterly, if each underlier closes at or above its 65% downside threshold on the related quarterly observation date, plus any previously unpaid coupons. Previously unpaid coupons will also be paid.
The securities will be called automatically starting Aug. 29, 2023 at par if the level of each underlier is greater than or equal to its initial price on any quarterly call determination date.
At maturity the payout will be par unless the worst performing asset closes below its 65% downside threshold level in which case investors will be fully exposed to the decline of the worst performing asset.
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: | Contingent income autocallable securities
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Underlying assets: | Nasdaq-100 index, S&P 500 index and Energy Select Sector SPDR Fund
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Amount: | $1,237,000
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Maturity: | Feb. 27, 2025
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Coupon: | 13%, paid quarterly, if each underlier closes at or above its 65% downside threshold on the related quarterly observation date, plus any previously unpaid coupons
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Price: | Par
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Payout at maturity: | Par unless the worst performing asset closes below its downside threshold level in which case investors will be fully exposed to the decline in the worst performing asset
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Call: | Automatically starting Aug. 29, 2023 at par if the level of each underlier is greater than or equal to its initial price on any quarterly call determination date
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Initial levels: | 11,969.65 for Nasdaq, 3,970.04 for S&P, $84.66 for Energy
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Downside thresholds: | 7,780.273 for Nasdaq, 2,580.526 for S&P, $55.029 for Energy, 65% of initial level
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Pricing date: | Feb. 24, 2023
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Settlement date: | March 1, 2023
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Agent: | Morgan Stanley & Co. LLC
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Fees: | 1.75%
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Cusip: | 61774TQ70
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