By Kiku Steinfeld
Chicago, July 23 – Morgan Stanley Finance LLC priced $705,000 of contingent income autocallable securities due Jan. 26, 2023 linked to the worst performing of the common stocks of Raytheon Technologies Corp. and Mastercard Inc., according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by Morgan Stanley.
If each stock closes at or above its downside threshold level, 70% of its initial share price, on a quarterly observation date, the notes will pay a contingent coupon that quarter at an annualized rate of 13%.
The notes will be called at par plus the contingent coupon if each stock closes at or above 90% of its initial share price on any quarterly determination date.
If each stock’s final share price is greater than or equal to its downside threshold level, the payout at maturity will be par plus the final contingent coupon. Otherwise, investors will lose 1% for every 1% that the lesser-performing stock declines from its initial share price.
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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Underliers: | Raytheon Technologies Corp. and Mastercard Inc.
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Amount: | $705,000
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Maturity: | Jan. 26, 2023
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Coupon: | 13% per year, payable quarterly if each stock closes at or above coupon threshold level on observation date for that quarter
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Price: | Par
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Payout at maturity: | If each stock’s final share price is greater than or equal to downside threshold level, par plus final contingent coupon; otherwise, 1% loss for every 1% that least-performing stock declines from initial share price
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Call: | At par plus contingent quarterly coupon if each stock closes at or above 90% of its initial share price on any quarterly determination date
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Initial share prices: | $307.60 for Mastercard, $63.05 for Raytheon
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Call levels: | $276.84 for Mastercard, $56.745 for Raytheon; 90% of initial level
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Downside thresholds: | $215.32 for Mastercard, $44.135 for Raytheon; 70% of initial share price
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Pricing date: | July 21
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Settlement date: | July 24
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Agent: | Morgan Stanley & Co. LLC
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Fees: | 3.25%
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Cusip: | 61771BVU5
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