Morgan Stanley plans trigger absolute return step notes on EAFE ETF

By Tali Rackner

Minneapolis, Oct. 25 – Morgan Stanley Finance LLC plans to price 0% trigger absolute return step securities due Oct. 31, 2022 linked to the iShares MSCI EAFE exchange-traded fund, according to an FWP filing with the Securities and Exchange Commission.

The notes will be guaranteed by Morgan Stanley.

If the fund finishes at or above its initial level, the payout at maturity will be par plus the greater of the fund return and the step return of 21% to 25%. The exact step return will be set at pricing.

If the fund falls but finishes at or above the 75% downside threshold level, the payout will be par plus the absolute value of the return.

Otherwise, investors will be fully exposed to any losses.

Morgan Stanley & Co. LLC is the agent with UBS Financial Services Inc. as dealer.

The notes will price on Oct. 26 and settle on Oct. 31.

The Cusip number is 61768J607.

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