Published on 9/7/2022 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley sells $5.37 million callable contingent income buffered notes on indexes
By Wendy Van Sickle
Columbus, Ohio, Sept. 7 – Morgan Stanley Finance LLC priced $5.37 million of callable contingent income buffered securities due Sept. 5, 2025 linked to the least performing of the S&P 500 index, the Euro Stoxx 50 index and the Russell 2000 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 coupon at the rate of 13% per year if each index closes at or above its coupon barrier level, 75% of its initial level, on the corresponding observation date.
The notes may be called at par plus any coupon due on any monthly observation date after three months.
If each index finishes at or above its buffer level, 70% of its initial level, the payout at maturity will be par plus the final coupon.
Otherwise, investors will lose 1.4286% for every 1% decline of the worst performer below the buffer.
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 buffered securities
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| Underlying indexes: | S&P 500 index, Russell 2000 index, Euro Stoxx 50 index
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| Amount: | $5,369,000
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| Maturity: | Sept. 5, 2025
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| Coupon: | 13% per year, payable monthly if each index closes at or above coupon barrier level on the observation date
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| Price: | Par
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| Payout at maturity: | Par plus final coupon if each index finishes at or above buffer level; otherwise, investors will lose 1.4286% for every 1% decline of the worst performer beyond 30%
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| Call: | At par plus any coupon due on any monthly observation date after three months at issuer’s option
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| Initial levels: | 3,456.7 for Stoxx, 3,966.85 for S&P, 1,822.818 for Russell
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| Coupon barriers: | 2,592.525 for Stoxx, 2,975.138 for S&P, 1,367.114 for Russell; 75% of initial levels
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| Buffers: | 2,419.69 for Stoxx, 2,776.795 for S&P, 1,275.973 for Russell; 70% of initial levels
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| Pricing date: | Sept. 1
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| Settlement date: | Sept. 7
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 0.5%
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| Cusip: | 61774FGT3
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