Published on 9/21/2023 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley sells $500,000 contingent income buffered securities on three indexes
By Kiku Steinfeld
Chicago, Sept. 21 – Morgan Stanley Finance LLC priced $500,000 of contingent income buffered securities due March 12, 2024 tied to the worst performing of the Russell 2000 index, the Dow Jones industrial average and the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a monthly contingent coupon at the rate of 8.5% per year if each index closes at or above its coupon barrier level, 70% of its initial level, on the observation date that period.
If all indexes finish at or above the buffer level, 70% of the initial level, the payout at maturity will be par plus the final coupon.
Otherwise, investors will lose 1.4286% for every 1% decline of the worst performer beyond 30%.
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 securities
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| Underlying indexes: | Russell 2000 index, S&P 500 index, Dow Jones industrial average
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| Amount: | $500,000
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| Maturity: | March 12, 2024
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| Coupon: | 8.5% per year, payable monthly if each index closes at or above coupon barrier level on observation date that period
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| Price: | Par
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| Payout at maturity: | If each index finishes at or above buffer level, par plus final coupon; otherwise, loss of 1.4286% for every 1% decline of the worst performer beyond 30%
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| Initial levels: | 33,431.44 for Dow, 4,048.42 for S&P, 1,899.757 for Russell
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| Coupon barriers: | 23,402.008 for Dow, 2,833.894 for S&P, 1,329.830 for Russell; 70% of initial levels
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| Buffer levels: | 23,402.008 for Dow, 2,833.894 for S&P, 1,329.830 for Russell; 70% of initial levels
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| Pricing date: | March 7, 2023
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| Settlement date: | March 10, 2023
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 0.2%
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| Cusip: | 61774T6Z0
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