Morgan Stanley to issue contingent income autocallables on SPDR S&P Regional Banking

By Emma Trincal

New York, May 13 – Morgan Stanley Finance LLC plans to issue contingent income autocallable securities due June 1, 2023 linked to the SPDR S&P Regional Banking ETF, according to an FWP filing with the Securities and Exchange Commission.

Investors will receive a coupon of 16.88% per year, paid quarterly, if the underlying ETF closes at or above its 80% downside threshold on the related quarterly observation date. Previously unpaid coupons will also be paid.

The securities will be called automatically at par if the price of the underlying ETF is greater than or equal to its initial price and on any quarterly review date.

At maturity the payout will be par unless the final level of the ETF closes below its 80% downside threshold in which case investors will be fully exposed to the decline of the ETF.

The final level will be the average of the five closing prices of the week preceding the maturity week.

The notes are guaranteed by Morgan Stanley.

Morgan Stanley & Co. LLC is the agent. J.P. Morgan Securities LLC and JPMorgan Chase Bank, N.A. will act as placement agents.

The notes were expected to price on May 13 and to settle on May 18.

The Cusip number is 61774DCF2.

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