Published on 2/28/2023 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley sells $250,000 buffered PLUS on commodities basket
By Kiku Steinfeld
Chicago, Feb. 28 – Morgan Stanley Finance LLC priced $250,000 of 0% buffered Performance Leveraged Upside Securities due Nov. 21, 2025 linked to a basket of equally-weighted commodities, according to a 424B2 filing with the Securities and Exchange Commission.
The basket consists of the West Texas Intermediate light sweet crude oil futures contracts, Brent crude oil, natural gas futures, corn, soybeans, wheat, copper and zinc, each with a 12.5% weight.
The payout at maturity will be par plus 2 times any basket gain. If the basket declines by not more than the 36.2% buffer, investors will receive par.
Investors will lose 1.5674% for every 1% decline in the basket beyond the 36.2% buffer.
The notes are guaranteed by Morgan Stanley.
Morgan Stanley & Co. LLC is the agent with JPMorgan Chase Bank, NA as placement agents.
| Issuer: | Morgan Stanley Finance LLC
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| Guarantor: | Morgan Stanley
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| Issue: | Buffered Performance Leveraged Upside Securities
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| Basket components: | West Texas Intermediate light sweet crude oil futures contracts, Brent crude oil, natural gas, corn, soybeans, wheat, copper, zinc; equal weights
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| Amount: | $250,000
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| Maturity: | Nov. 21, 2025
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| Coupon: | 0%
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| Price: | Par
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| Payout at maturity: | Par plus two times any basket gain; par if basket falls by up to 36.2%, 1.5674% loss for every 1% decline in the basket beyond buffer
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| Initial prices: | $80.08 for WTI, $87.62 for Brent, $6.303 for natural gas, $6.6775 for corn, $14.2825 for soybeans, $8.0325 for wheat, $8,047 for copper and $3,007.50 for zinc
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| Buffer level: | 63.8% of initial levels
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| Pricing date: | Nov. 18, 2022
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| Settlement date: | Nov. 23, 2022
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| Agent: | Morgan Stanley & Co. LLC with J.P. Morgan Securities LLC and JPMorgan Chase Bank, NA as placement agents
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| Fees: | 2%
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| Cusip: | 61774FAQ5
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