Published on 3/30/2022 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $3 million trigger callable contingent yield notes on indexes
By William Gullotti
Buffalo, N.Y., March 30 – Morgan Stanley Finance LLC priced $3 million of trigger callable contingent yield notes with quarterly coupon observation due Sept. 30, 2025 linked to the worst performing of the MSCI Emerging Markets index, the Russell 2000 index and the Euro Stoxx 50 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 quarterly coupon at an annual rate of 9.3% if each index closes at or above its coupon barrier level, 70% of its initial level, on the relevant observation date.
The notes will be callable at par of $10 plus any coupon otherwise due on any quarterly observation date other than the final one.
If the notes are not called and each index finishes at or above its coupon barrier, the payout at maturity will be par plus the final coupon.
If the worst performer finishes below its coupon barrier but at or above its downside threshold level, 50% of its initial level, the payout at maturity will be par. Otherwise, investors will lose 1% for every 1% decline of the least-performing index from its initial level.
UBS Financial Services Inc. and Morgan Stanley & Co. LLC are the agents.
| Issuer: | Morgan Stanley Finance LLC
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| Guarantor: | Morgan Stanley
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| Issue: | Trigger callable contingent yield notes with quarterly coupon observation
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| Underlying indexes: | MSCI Emerging Markets index, Russell 2000 index, Euro Stoxx 50 index
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| Amount: | $3 million
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| Maturity: | Sept. 30, 2025
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| Coupon: | 9.3% per year, payable quarterly if each index closes at or above its barrier level on the corresponding observation date
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| Price: | Par of $10
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| Payout at maturity: | Par plus final coupon if each index finishes at or above coupon barrier; if worst performer finishes below coupon barrier but at or above downside threshold, par; otherwise, 1% loss for every 1% decline of worst performing index from initial level
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| Call option: | At par plus any coupon due on any quarterly observation date other than final one
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| Initial levels: | 1,125.01 for MSCI, 2,077.983 for Russell, 3,867.73 for Stoxx
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| Coupon barrier levels: | 787.51 for MSCI, 1,454.588 for Russell, 2,707.41 for Stoxx; 70% of initial levels
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| Downside thresholds: | 562.51 for MSCI, 1,038.992 for Russell, 1,933.87 for Stoxx; 50% of initial levels
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| Pricing date: | March 25
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| Settlement date: | March 30
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| Agents: | UBS Financial Services Inc. and Morgan Stanley & Co. LLC
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| Fees: | 2%
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| Cusip: | 61773Y326
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