Published on 8/18/2023 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley sells $7.69 million contingent market-linked autocalls on three indexes
By William Gullotti
Buffalo, N.Y., Aug. 18 – Morgan Stanley Finance LLC priced $7.69 million of market-linked securities – autocallable with contingent coupon and contingent downside due July 31, 2024 linked to the performance of the S&P 500 index, the Russell 2000 index and the Nasdaq-100 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 monthly interest payment at the rate of 9.25% per year if each index closes at or above the coupon barrier level, 75% of the initial level, on the observation date for that period.
The notes will be called at par plus an interest payment if each index closes at or above the initial level on any monthly call observation date after six months.
The payout at maturity will be par plus the final interest payment if each index finishes at or above its 75% downside threshold.
Otherwise, investors will be fully exposed to the decline of the worst performer from its initial level.
Morgan Stanley & Co. LLC and Wells Fargo Securities, LLC are the agents.
| Issuer: | Morgan Stanley Finance LLC
|
| Guarantor: | Morgan Stanley
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| Issue: | Market linked securities – autocallable with contingent coupon and contingent downside
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| Underlying indexes: | S&P 500 index, Russell 2000 index, Nasdaq-100 index
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| Amount: | $7,687,000
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| Maturity: | July 31, 2024
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| Coupon: | 9.25% annual rate, payable monthly if all indexes close at or above their coupon barrier levels on the relevant observation date
|
| Price: | Par
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| Payout at maturity: | Par plus final coupon of each index finishes at or above its downside threshold; otherwise, 1% loss for every 1% decline of worst performer from its initial level
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| Call: | At par plus coupon if each index closes at or above its initial level on any monthly call observation date after six months
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| Initial levels: | 4,588.96 for S&P, 2,003.177 for Russell, 15,757.0 for Nasdaq
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| Coupon barriers: | 3,441.72 for S&P, 1,502.38275 for Russell, 11,817.75 for Nasdaq; 75% of initial levels
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| Downside thresholds: | 3,441.72 for S&P, 1,502.38275 for Russell, 11,817.75 for Nasdaq; 75% of initial levels
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| Pricing date: | July 31
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| Settlement date: | Aug. 3
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| Agents: | Morgan Stanley & Co. LLC and Wells Fargo Securities, LLC
|
| Fees: | 1.325%
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| Cusip: | 61775HGC5
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