Published on 5/10/2022 in the Prospect News Structured Products Daily.
Correction: Morgan Stanley amends $6.25 million buffer gears tied to commodities basket
By Wendy Van Sickle
Columbus, Ohio, May 10 – Morgan Stanley Finance LLC amended the downside threshold of its $6.25 million of 0% buffer gears due April 30, 2025 linked to a weighted basket of commodities, according to a revised 424B2 filing with the Securities and Exchange Commission.
The notes will feature a downside threshold of 70%, rather than a buffer level of 80% as previously reported by the issuer and as reported by Prospect News on May 3.
The basket consists of the West Texas Intermediate light sweet crude oil futures, Brent crude oil futures, natural gas futures, corn futures, soybeans futures, wheat futures, the grade A copper spot price and the special high-grade zinc spot price, each with a 12.5% weight.
If the basket return is greater than zero, the payout at maturity will be par of $10 plus 2.65 times the basket return. Investors will receive par if the basket declines by 30% or less and will lose 1% for every 1% that the basket declines from its initial level if it falls by more than 30%.
The notes are guaranteed by Morgan Stanley.
Morgan Stanley & Co. LLC and UBS Financial Services Inc. are the underwriters.
| Issuer: | Morgan Stanley Finance LLC
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| Guarantor: | Morgan Stanley
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| Issue: | Buffer gears
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| Underlying basket: | West Texas Intermediate light sweet crude oil futures, Brent crude oil futures, natural gas futures, corn futures, soybeans futures, wheat futures, grade A copper spot price and special high-grade zinc spot price, each with a 12.5% weight
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| Amount: | $6.25 million
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| Maturity: | April 30, 2025
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| Coupon: | 0%
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| Price: | Par of $10
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| Payout at maturity: | If basket return is greater than zero, par plus 2.65 times basket return; par if basket declines by 30% or less; 1% loss for every 1% that basket declines from initial level if basket falls by more than 30%
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| Initial levels: | $102.02 for WTI, $105.32 for Brent crude, $7.267 for natural gas, 812.25¢ for corn, 1,692.72¢ for soybeans, 1,692.72¢ for wheat, $9,910.00 for copper and $4,319.50 for zinc
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| Pricing date: | April 27
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| Settlement date: | April 29
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| Underwriter: | Morgan Stanley & Co. LLC and UBS Financial Services Inc.
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| Fees: | 0%
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| Cusip: | 61773QVG1
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