Published on 4/2/2023 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $728,000 11.42% contingent income autocalls on ETFs
By Kiku Steinfeld
Chicago, April 3 – Morgan Stanley Finance LLC priced $728,000 of contingent income autocallable securities due Dec. 14, 2023 linked to the iShares Russell 2000 ETF, Invesco QQQ Trust, Series 1 and SPDR S&P 500 ETF Trust, according to a 424B2 filing with the Securities and Exchange Commission.
Investors will receive a coupon of 11.42%, paid monthly, if each underlying fund closes at or above its 65% downside threshold on the related monthly observation date, plus any previously unpaid coupons.
The securities will be called automatically starting March 14, 2023 at par if the price of each underlying fund 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 ETF closes below its 65% downside threshold level in which case investors will be fully exposed to the decline of the worst performing ETF.
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 ETFs: | iShares Russell 2000 ETF, Invesco QQQ Trust, Series 1 and SPDR S&P 500 ETF Trust
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Amount: | $728,000
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Maturity: | Dec. 14, 2023
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Coupon: | 11.42%, paid monthly, if each underlying fund closes at or above its 65% downside threshold on the related monthly 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 ETF closes below its downside threshold level in which case investors will be fully exposed to the decline in the worst performing ETF
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Call: | Automatically starting March 14, 2023 at par if the price of each underlying fund is greater than or equal to its initial price on any quarterly call determination date
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Initial levels: | $178.62 for iShares, $282.04 for Invesco, $393.28 for SPDR
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Downside thresholds: | $116.103 for iShares, $183.326 for Invesco, $255.632 for SPDR, 65% of initial level
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Pricing date: | Dec. 9
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Settlement date: | Dec. 14
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Agent: | Morgan Stanley & Co. LLC
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Fees: | 0.2%
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Cusip: | 61774TCC4
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