By Angela McDaniels
Tacoma, Wash., Nov. 17 – Morgan Stanley Finance LLC priced $10.4 million of 0% jump securities with autocallable feature due Oct. 29, 2026 with six-month initial non-call period linked to the lesser performing of the Consumer Staples Select Sector SPDR fund and the Utilities Select Sector SPDR fund, according to a 424B2 filing with the Securities and Exchange Commission.
Beginning April 26, 2024, the notes will be automatically called at par plus 11.65% per year if each fund closes at or above its call level on any quarterly review date. For each fund, the call level is 100% of its initial share price on the first through third review dates, 95% of its initial share price on the fourth through seventh review dates and 90% of its initial share prices on the remaining review dates.
If the final share price of each fund is greater than or equal to 90% of its initial share price, the payout at maturity will be par plus 34.95%.
If the final share price of either fund is less than 90% of its initial share price but the final share price of each fund is greater than or equal to 70% of its initial share price, the payout will be par.
If the final share price of either fund is less than 70% of its initial share price, investors will be exposed to the decline of the lesser performing fund.
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: | Jump securities with autocallable feature with six-month initial non-call period
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| Underlying ETFs: | Consumer Staples Select Sector SPDR fund and Utilities Select Sector SPDR fund
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| Amount: | $10,396,000
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| Maturity: | Oct. 29, 2026
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| Coupon: | 0%
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| Price: | Par
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| Payout at maturity: | If final share price of each fund is greater than or equal to 90% of initial share price, par plus 34.95%; if final share price of either fund is less than 90% of initial share price but final share price of each fund is greater than or equal to 70% of initial share price, par; otherwise, exposure to decline of lesser performing fund
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| Call: | Beginning April 26, 2024, automatically at par plus 11.65% per year if each fund closes at or above call level on any quarterly review date; call level: 100% of initial share price on first through third review dates, 95% of initial share price on fourth through seventh review dates and 90% of initial share prices on remaining review dates
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| Initial share prices: | $67.50 for consumer staples and $59.86 for utilities
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| Downside thresholds: | $47.25 for consumer staples and $41.902 for utilities, or 70% of initial share prices
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| Pricing date: | Oct. 26
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| Settlement date: | Oct. 31
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 2%
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| Cusip: | 61775MLG9
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