Chicago, Oct. 25 – Morgan Stanley Finance LLC priced $250,000 of contingent income autocallable securities due Feb. 28, 2024 linked to the worst performing of the Energy Select Sector SPDR fund and SPDR S&P Biotech ETF, according to a 424B2 filing with the Securities and Exchange Commission.
Investors will receive a coupon of 11.5%, paid quarterly, if each underlying fund closes at or above its 70% downside threshold on the related quarterly observation date.
The securities will be called automatically starting Aug. 23, 2022 at par on any quarterly call determination date if both ETFs close above their 90% redemption threshold levels.
If the notes are not called, at maturity the payout will be par unless the worst performing ETF closes below its 70% downside threshold level in which case investors will be fully exposed to the decline of the worst performing ETF.
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 autocallable securities
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| Underlying ETFs: | Energy Select Sector SPDR fund and SPDR S&P Biotech ETF
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| Amount: | $250,000
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| Maturity: | Feb. 28, 2024
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| Coupon: | 11.5% annual rate, paid quarterly, if each underlying fund closes at or above its 70% downside threshold on the related quarterly observation date
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| Price: | Par
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| Payout at maturity: | If not called, par unless the worst performing ETF closes below its downside threshold level in which case investors will be fully exposed to the decline in the worst performing ETF
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| Call: | Automatically starting Aug. 23, 2022 at par on any quarterly call determination date if both funds close above 90% redemption threshold levels
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| Initial levels: | $85.10 for Biotech ETF, $67.64 for Energy fund
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| Downside thresholds: | $59.57 for Biotech ETF, $47.348 for Energy fund, 70% of initial levels
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| Call threshold: | $76.59 for Biotech ETF, $60.876 for Energy fund, 90% of initial levels
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| Pricing date: | Feb. 23
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| Settlement date: | Feb. 28
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 2.5%
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| Cusip: | 61773H3A5
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