Published on 1/29/2024 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $504,000 13.1% contingent income buffered autocalls on ETFs
By Emma Trincal
New York, Jan. 29 – Morgan Stanley Finance LLC priced $504,000 of contingent income buffered autocallable securities due Oct. 27, 2025 linked to the worst performing of the SPDR S&P Biotech ETF, the VanEck Gold Miners ETF and the SPDR S&P Regional Banking ETF, according to a 424B2 filing with the Securities and Exchange Commission.
Investors will receive a coupon of 13.1%, paid monthly, if each underlying fund closes at or above its 70% coupon barrier on the related monthly observation date. Previously unpaid coupons will also be paid.
The securities will be called automatically starting July 22, 2024 at par if the price of each underlying fund is greater than or equal to its initial price on any monthly call determination date.
At maturity the payout will be par unless either fund declines by more than its 20% buffer in which case investors will be exposed to the decline of the worst performing fund beyond the buffer.
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 autocallable securities
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Underlying ETFs: | SPDR S&P Biotech ETF, VanEck Gold Miners ETF and SPDR S&P Regional Banking ETF
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Amount: | $504,000
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Maturity: | Oct. 27, 2025
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Coupon: | 13.1% annual rate, paid monthly, if each underlying fund closes at or above its 70% coupon barrier on the related monthly observation date; previously unpaid coupons will also be paid
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Price: | Par
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Payout at maturity: | Par if the worst performing fund gains or loses no more than its 20% buffer, otherwise investors will be exposed to the decline in the worst performing fund beyond the buffer
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Call: | Automatically starting July 22, 2024 at par if the price of each underlying fund is greater than or equal to its initial price on any monthly call determination date
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Initial levels: | $89.01 for biotech, $27.6 for gold and 52.16 for banking
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Coupon barriers: | $62.307 for the biotech, $19.32 for gold and $36.512 for banking, 70% of initial levels
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Buffer levels: | $71.208 for the biotech, $22.08 for gold and $41.728 for banking, 80% of initial levels
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Buffer: | 20%
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Pricing date: | Jan. 22
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Settlement date: | Jan. 25
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Agent: | Morgan Stanley & Co. LLC
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Fees: | 0%
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Cusip: | 61771WPY8
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