Published on 5/20/2022 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley sells $8.37 million capped trigger gears on five index basket
By William Gullotti
Buffalo, N.Y., May 20 – Morgan Stanley Finance LLC priced $8.37 million of 0% capped trigger gears due May 19, 2026 linked to a basket of indexes, according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by Morgan Stanley.
The basket includes the Euro Stoxx 50 index with a 40% weight, the Nikkei 225 index with a 25% weight, the FTSE 100 index with a 17.5% weight, the Swiss Market index with a 10% weight and the S&P/ASX 200 index with a 7.5% weight.
The payout at maturity will be par of $10 plus 300% of any basket gain, subject to a maximum payout of par plus 83.5%.
Investors will receive par if the basket declines by 25% or less and be fully exposed to the basket’s decline from its initial level if it declines by more than 25%.
Morgan Stanley & Co. LLC is the agent with UBS Financial Services Inc. as placement agent.
Issuer: | Morgan Stanley Finance LLC
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Guarantor: | Morgan Stanley
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Issue: | Capped trigger gears
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Underlying basket: | Euro Stoxx 50 (40% weight), Nikkei 225 index (25% weight), FTSE 100 (17.5% weight), Swiss Market (10% weight) and S&P/ASX 200 (7.5% weight)
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Amount: | $8,373,500
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Maturity: | May 19, 2026
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Coupon: | 0%
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Price: | Par of $10
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Payout at maturity: | Par plus 300% of any basket gain, capped at 83.5%; par if basket declines by 25% or less; full exposure to the basket’s decline from its initial level if it declines by more than 25%
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Initial levels: | 3,703.42 for Stoxx, 26,427.65 for Nikkei, 7,418.15 for FTSE, 11,650.42 for Swiss, 7,075.112 for S&P/ASX
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Downside threshold: | 75% of initial level
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Pricing date: | May 13
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Settlement date: | May 18
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Agent: | Morgan Stanley & Co. LLC
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Dealer: | UBS Financial Services Inc.
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Fees: | 2%
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Cusip: | 61773Y722
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