Published on 4/26/2022 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley sells $15 million contingent income autocalls on Nasdaq, S&P, Stoxx
By William Gullotti
Buffalo, N.Y., April 26 – Morgan Stanley Finance LLC priced $15 million of contingent income autocallable securities due April 25, 2025 tied to the worst performing of the Nasdaq-100 index, the S&P 500 index and the Euro Stoxx 50 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a quarterly contingent coupon at the rate of 9.3% per year if each index closes at or above its coupon barrier level, 75% of its initial level, on every trading day during the observation period.
The notes will be automatically called at par if each index closes at or above its initial level on any quarterly call determination date after six months.
If the lowest-performing index finishes at or above its coupon barrier, the payout at maturity will be par plus any coupon otherwise payable.
If the worst performer finishes below its coupon barrier but at or above its downside threshold level, 60% of its initial level, the payout at maturity will be par. Otherwise, investors will be fully exposed to the decline of the final index value 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
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| Guarantor: | Morgan Stanley
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| Issue: | Contingent income autocallable securities
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| Underlying indexes: | Nasdaq-100 index, S&P 500 index, Euro Stoxx 50 index
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| Amount: | $15 million
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| Maturity: | April 25, 2025
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| Coupon: | 9.3% per year, payable quarterly if each index closes at or above coupon barrier level on every trading day during the observation period
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| Price: | Par
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| Payout at maturity: | If each index finishes at or above coupon barrier, par plus any final coupon otherwise due; if the worst performer finishes below its coupon barrier but at or above downside threshold level, par; otherwise, full exposure to decline of worst performer from its initial level
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| Call: | At par if each index closes at or above its initial level on any quarterly call determination date after six months
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| Initial levels: | 13,998.53 for Nasdaq, 4,459.45 for S&P, 3,896.81 for Stoxx
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| Coupon barriers: | 10,498.898 for Nasdaq, 3,344.588 for S&P, 2,922.608 for Stoxx; 75% of initial levels
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| Downside threshold levels: | 8,399.118 for Nasdaq, 2,675.67 for S&P, 2,338.086 for Stoxx; 60% of initial levels
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| Pricing date: | April 20
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| Settlement date: | April 25
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 2.5%
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| Cusip: | 61773QT25
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