Published on 7/27/2023 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $992,020 call warrants linked to oil E&P stocks
By Angela McDaniels
Tacoma, Wash., July 27 – Morgan Stanley Finance LLC priced 3,860 call warrants linked to an equally weighted basket of the common stocks of Ovintiv Inc., Callon Petroleum Co., Range Resources Corp. and Laredo Petroleum, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
The notional amount is $1,000 per warrant. The issue price is $257 per warrant for a total premium amount of $992,020.
The expiration date is Sept. 9, 2024, and the cash settlement date is Sept. 12, 2024.
The warrants will be automatically exercised on the expiration date if the basket finishes above the initial basket level, and the cash settlement amount will be the notional amount multiplied by the basket return, subject to a maximum cash settlement amount of $800 per warrant.
If the basket finishes at or below the initial basket level, the warrants will expire worthless and the cash settlement amount will be zero.
The warrants are guaranteed by Morgan Stanley.
Stifel Nicolaus & Co. 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: | Call warrants
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| Underlying stocks: | Ovintiv Inc., Callon Petroleum Co., Range Resources Corp. and Laredo Petroleum, Inc., equally weighted
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| Warrants: | 3,860
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| Notional amount: | $1,000 each, or $3,860,000 total
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| Price: | $257 per warrant, or $992,020 total
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| Maturity: | Sept. 9, 2024
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| Cash settlement date: | Sept. 12, 2024
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| Payout: | If basket finishes above initial basket level, notional amount multiplied by basket return, subject to maximum cash settlement amount of $800 per warrant; otherwise, nothing
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| Initial share prices: | $50.35 for Ovintiv, $40.49 for Callon, $30.52 for Range Resources and $70.92 for Laredo
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| Pricing date: | Sept. 12, 2022
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| Settlement date: | Sept. 15, 2022
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| Agents: | Stifel Nicolaus & Co. and Morgan Stanley & Co. LLC
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| Fees: | 3.11%
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| Cusip: | 61774E410
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