Published on 1/30/2024 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley sells $4.07 million trigger autocallable contingent yield notes on indexes
Chicago, Jan. 30 – Morgan Stanley Finance LLC priced $4.07 million of trigger autocallable contingent yield notes due Jan. 14, 2027 linked to the least performing of the S&P 500 index and the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by Morgan Stanley.
The notes will pay a contingent quarterly coupon at the rate of 9.8% per year if each index closes at or above its coupon barrier, 70% of its initial level, on the related observation date.
The notes will be automatically called at par plus any coupon due if each index closes at or above its initial level on any quarterly call observation date starting after six months.
If the notes are not called and the final level of each index is greater than or equal to the downside threshold level, 70% of the initial level, the payout at maturity will be par plus the final coupon.
Otherwise, investors will lose 1% for every 1% that the worst performer declines from its initial level.
Morgan Stanley and UBS Financial Services Inc. are the agents.
Issuer: | Morgan Stanley Finance LLC
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Guarantor: | Morgan Stanley
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Issue: | Trigger autocallable contingent yield notes
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Underlying indexes: | Russell 2000 index, S&P 500 index
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Amount: | $4,065,000
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Maturity: | Jan. 14, 2027
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Coupon: | 9.8% per year, paid quarterly, if each index closes at or above its coupon barrier on the related observation date
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Price: | Par of $10.00
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Payout at maturity: | If each index finishes at or above downside threshold, par plus final coupon; otherwise, 1% loss for each 1% decline of worst performer from initial level
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Call: | Automatically at par plus any coupon if each index closes at or above initial level on any quarterly call observation date starting after six months
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Initial levels: | 1,970.261 for Russell, 4,783.45 for S&P
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Coupon barrier levels: | 1,379.183 for Russell, 3,348.42 for S&P; 70% of initial levels
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Downside thresholds: | 1,379.183 for Russell, 3,348.42 for S&P; 70% of initial levels
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Pricing date: | Jan. 10
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Settlement date: | Jan. 16
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Agents: | Morgan Stanley and UBS Financial Services Inc.
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Fees: | 0%
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Cusip: | 61775K712
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