Published on 5/1/2024 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $2.95 million trigger callable contingent yield notes on indexes
By William Gullotti
Buffalo, N.Y., May 1 – Morgan Stanley Finance LLC priced $2.95 million of trigger callable contingent yield notes with daily coupon observation due Oct. 28, 2027 linked to the worst performing of the S&P 500 index, the Russell 2000 index and the Euro Stoxx 50 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 an annual rate of 10.2% if each index closes at or above its coupon barrier level, 70% of its initial level, on every trading day during the observation period.
The notes will be callable at par of $10 plus any coupon otherwise due on any quarterly observation date other than the final one.
If the notes are not called and each index finishes at or above its coupon barrier, the payout at maturity will be par plus any final coupon otherwise due.
If the worst performer finishes below its coupon barrier but at or above its downside threshold level, 60% of its initial level, the payout at maturity will be par. Otherwise, investors will lose 1% for every 1% decline of the least-performing index from its initial level.
UBS Financial Services Inc. and Morgan Stanley & Co. LLC are the agents.
| Issuer: | Morgan Stanley Finance LLC
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| Guarantor: | Morgan Stanley
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| Issue: | Trigger callable contingent yield notes with daily coupon observation
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| Underlying indexes: | S&P 500 index, Russell 2000 index, Euro Stoxx 50 index
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| Amount: | $2.95 million
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| Maturity: | Oct. 28, 2027
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| Coupon: | 10.2% per year, payable quarterly if each index closes at or above its barrier level on every trading day during the relevant observation period
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| Price: | Par of $10
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| Payout at maturity: | Par plus any final coupon otherwise due if each index finishes at or above coupon barrier; if worst performer finishes below coupon barrier but at or above downside threshold, par; otherwise, 1% loss for every 1% decline of worst performing index from initial level
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| Call option: | At par plus any coupon due on any quarterly observation date other than final one
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| Initial levels: | 5,071.63 for S&P, 1,995.426 for Russell, 4,989.88 for Stoxx
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| Coupon barrier levels: | 3,550.14 for S&P, 1,396.798 for Russell, 3,492.92 for Stoxx; 70% of initial levels
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| Downside thresholds: | 3,042.98 for S&P, 1,197.256 for Russell, 2,993.93 for Stoxx; 60% of initial levels
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| Pricing date: | April 24
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| Settlement date: | April 29
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| Agents: | UBS Financial Services Inc. and Morgan Stanley & Co. LLC
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| Fees: | 1%
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| Cusip: | 617938212
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