Published on 2/13/2024 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley sells $250,000 14% contingent income buffered autocallables on ETFs
Chicago, Feb. 13 – Morgan Stanley Finance LLC priced $250,000 of contingent income buffered autocallable securities due March 2, 2026 linked to the worst performing of the Energy Select Sector SPDR Fund and the VanEck Vectors Oil Services ETF, according to a 424B2 filing with the Securities and Exchange Commission.
Investors will receive a coupon of 14%, paid monthly, if each underlying fund closes at or above its 80% coupon barrier on the related monthly observation date.
The securities will be called automatically starting Nov. 30, 2023 at par if the price of each underlying fund is greater than or equal to its initial price on any quarterly call determination date.
At maturity the payout will be par unless either fund declines by more than its 15% buffer in which case investors will be exposed to the decline of the worst performing fund beyond the buffer.
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: | Contingent income buffered autocallable securities
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| Underlying ETFs: | Energy Select Sector SPDR Fund and VanEck Vectors Oil Services ETF
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| Amount: | $250,000
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| Maturity: | March 2, 2026
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| Coupon: | 14% annual rate, paid monthly, if each underlying fund closes at or above its 80% coupon barrier on the related monthly observation date
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| Price: | Par
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| Payout at maturity: | Par if the worst performing fund gains or loses no more than its 15% buffer, otherwise investors will be exposed to the decline in the worst performing fund beyond the buffer
|
| Call: | Automatically starting Nov. 30, 2023 at par if the price of each underlying fund is greater than or equal to its initial price on any quarterly call determination date
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| Initial levels: | $261.12 for oil, $79.08 for energy
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| Coupon barriers: | $208.896 for oil, $63.264 for energy, 80% of initial levels
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| Buffer levels: | $221.952 for oil, $67.218 for energy, 85% of initial levels
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| Buffer: | 15%
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| Pricing date: | May 25, 2023
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| Settlement date: | May 31, 2023
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 2.6%
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| Cusip: | 61774XSZ7
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