By Kiku Steinfeld
Chicago, Jan. 24 – Morgan Stanley Finance LLC priced $500,000 of contingent income autocallable securities due June 4, 2026 linked to the Energy Select Sector SPDR Fund, according to a 424B2 filing with the Securities and Exchange Commission.
Investors will receive a coupon of 12.8%, paid quarterly, if the underlying fund closes at or above its 70% coupon barrier on the related quarterly observation date.
The securities will be called automatically starting Dec. 6, 2023 at par if the price of the underlying stock is greater than or equal to its initial price on any quarterly call determination date.
At maturity the payout will be par unless the ETF closes below its 60% downside threshold level in which case investors will be fully exposed to the decline of the 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 ETF: | Energy Select Sector SPDR Fund
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| Amount: | $500,000
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| Maturity: | June 4, 2026
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| Coupon: | 12.8%, paid quarterly, if the underlying fund closes at or above its 70% coupon barrier on the related quarterly observation date
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| Price: | Par
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| Payout at maturity: | Par unless the ETF closes below its downside threshold level in which case investors will be fully exposed to the decline in the ETF
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| Call: | Automatically starting Dec. 6, 2023 at par if the price of the underlying stock is greater than or equal to its initial price on any quarterly call determination date
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| Initial level: | $77.54
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| Downside threshold: | $46.524, 60% of initial level
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| Coupon barrier: | $54.278, 70% of initial level
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| Pricing date: | June 2, 2023
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| Settlement date: | June 7, 2023
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 0.6%
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| Cusip: | 61774X5N9
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