Published on 5/9/2023 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley sells $20,000 tap of callable contingent income securities on indexes, ETF
By William Gullotti
Buffalo, N.Y., May 9 – Morgan Stanley Finance LLC priced $20,000 additional callable contingent income securities due April 24, 2025 linked to the Russell 2000 index, the SPDR S&P Regional Banking ETF and the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
The additional securities bumped the aggregate issue to $1.54 million.
Investors will receive a coupon of 13.8%, paid quarterly, if each underlier closes at or above its 65% downside threshold on the related quarterly observation date.
The securities may be called at par on any quarterly call date starting Oct. 25, 2023.
At maturity, the payout will be par unless the worst performing asset finishes below its 65% downside threshold, in which case investors will be fully exposed to the decline of the worst performing asset.
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: | Callable contingent income securities, add-on
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| Underlying assets: | Russell 2000 index, SPDR S&P Regional Banking ETF and S&P 500 index
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| Amount: | $20,000
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| Maturity: | April 24, 2025
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| Coupon: | 13.8%, paid quarterly, if each underlier closes at or above its 65% downside threshold on the related quarterly observation date
|
| Price: | Par
|
| Payout at maturity: | Par unless the worst performing asset finishes below its downside threshold level, in which case investors will be fully exposed to the decline in the worst performing underlying asset
|
| Call option: | At par on any quarterly call date starting Oct. 25, 2023
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| Initial levels: | $43.48 for SPDR S&P Regional Banking ETF, 1,789.697 for Russell 2000, 4,129.79 for S&P 500
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| Downside thresholds: | $28.262 for SPDR S&P Regional Banking ETF, 1,163.303 for Russell 2000, 2,684.364 for S&P 500, 65% of initial levels
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| Strike date: | April 20
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| Pricing date: | May 5
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| Settlement date: | May 8
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 1.75%
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| Cusip: | 61774XRU9
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| Total issue: | $1.54 million, including initial $1.54 million settled April 25
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