By Emma Trincal
New York, Oct. 16 – Morgan Stanley Finance LLC priced $1.67 million of callable contingent income securities due Oct. 15, 2026 linked to the worst performing of the Technology Select Sector SPDR fund, the Energy Select Sector SPDR fund and the Utilities Select Sector SPDR fund, according to a 424B2 filing with the Securities and Exchange Commission.
Investors will receive a coupon at the rate of 14.1% per year, paid monthly, if each underlying ETF closes at or above its 70% coupon barrier level on the related observation date.
The securities may be called at par on any quarterly call date.
At maturity the payout will be par unless the worst performing ETF closes below its 50% downside threshold in which case investors will be fully exposed to the decline of that 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: | Callable contingent income securities
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| Underlying funds: | Technology Select Sector SPDR fund, Energy Select Sector SPDR fund and Utilities Select Sector SPDR fund
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| Amount: | $1,672,000
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| Maturity: | Oct. 15, 2026
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| Coupon: | 14.1% annual rate, paid monthly, if each underlying ETF closes at or above its 70% coupon barrier level on the related monthly observation date
|
| 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 underlying ETF
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| Call: | At par on any quarterly call date
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| Initial levels: | $169.35 for technology, $88.70 for energy and $58.61 for utilities
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| Coupon barrier levels: | $118.545 for technology, $62.09 for energy and $41.027 for utilities, 70% of initial levels
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| Downside thresholds: | $84.675 for technology, $44.35 for energy and $29.305 for utilities, 50% of initial levels
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| Pricing date: | Oct. 10
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| Settlement date: | Oct. 13
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 0.75%
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| Cusip: | 61775MJK3
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