Published on 6/30/2022 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley sells $1.64 million contingent market-linked autocalls on three indexes
By William Gullotti
Buffalo, N.Y., June 30 – Morgan Stanley Finance LLC priced $1.64 million of market-linked securities – autocallable with contingent coupon and contingent downside due Dec. 29, 2023 linked to the performance of the Dow Jones industrial average, the Russell 2000 index and the Nasdaq-100 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by Morgan Stanley.
The notes will pay a contingent monthly interest payment at the rate of 11.15% per year if each index closes at or above the coupon barrier level, 70% of the initial share level, on the observation date for that period.
The notes will be called at par plus an interest payment if each index closes at or above the initial level on any monthly call observation date after six months.
The payout at maturity will be par plus the final interest payment if each index finishes at or above its respective coupon barrier.
If the worst performer finishes below its coupon barrier but at or above its 65% downside threshold, the payout at maturity will be par. Otherwise, investors will be fully exposed to the decline of the worst performer from its initial level.
Morgan Stanley & Co. LLC and Wells Fargo Securities, LLC are the agents.
| Issuer: | Morgan Stanley Finance LLC
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| Guarantor: | Morgan Stanley
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| Issue: | Market linked securities – autocallable with contingent coupon and contingent downside
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| Underlying indexes: | Dow Jones industrial average, Russell 2000 index, Nasdaq-100 index
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| Amount: | $1,635,000
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| Maturity: | Dec. 29, 2023
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| Coupon: | 11.15% annual rate, payable monthly if all indexes close at or above their coupon barrier levels on the relevant observation date
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| Price: | Par
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| Payout at maturity: | Par plus final coupon of each index finishes at or above its coupon barrier; if worst performer lags below coupon barrier but finishes at or above downside threshold, par; otherwise, 1% loss for every 1% decline of worst performer from its initial level
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| Call: | At par plus coupon if each index closes at or above its initial level on any monthly call observation date after six months
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| Initial levels: | 31,500.68 for Dow, 1,765.737 for Russell, 12,105.85 for Nasdaq
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| Coupon barriers: | 22,050.476 for Dow, 1,236.0159 for Russell, 8,474.095 for Nasdaq; 70% of initial levels
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| Downside thresholds: | 20,475.442 for Dow, 1,147.72905 for Russell, 7,868.8025 for Nasdaq; 65% of initial levels
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| Pricing date: | June 24
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| Settlement date: | June 29
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| Agents: | Morgan Stanley & Co. LLC and Wells Fargo Securities, LLC
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| Fees: | 1.525%
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| Cusip: | 61774DRC3
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