Trigger PLUS Based on the Value of the Worst Performing of the S&P 500® Index and the SPDR® S&P MidCap 400® ETF Trust due June 10, 2027
Trigger Performance Leveraged Upside SecuritiesSM
Fully and Unconditionally Guaranteed by Morgan Stanley
Principal at Risk Securities
The Trigger PLUS are unsecured obligations of Morgan Stanley Finance LLC (“MSFL”) and are fully and unconditionally guaranteed by Morgan Stanley. The Trigger PLUS will pay no interest, do not guarantee any return of principal at maturity and have the terms described in the accompanying product supplement for PLUS, index supplement and prospectus, as supplemented or modified by this document. The payment at maturity on the Trigger PLUS will be based on the value of the worst performing of the S&P 500® Index and the SPDR® S&P MidCap 400® ETF Trust. At maturity, if the final level of each underlying is greater than its respective initial level, investors will receive the stated principal amount of their investment plus leveraged upside performance of the worst performing underlying. If the final level of either of the underlyings is less than or equal to its respective initial level but the final level of each underlying is greater than or equal to its respective trigger level, investors will receive the stated principal amount of their investment. However, if the final level of either of the underlyings is less than its respective trigger level, investors will be negatively exposed to the full decline in the worst performing underlying and will lose 1% of the stated principal amount for every 1% of decline in the worst performing underlying, without any buffer. Investors may lose their entire initial investment in the Trigger PLUS. Because the payment at maturity of the Trigger PLUS is based on the worst performing of the underlyings, a decline in either of the underlyings beyond its respective trigger level will result in a significant loss of your investment even if the other underlying has appreciated or has not declined as much. The Trigger PLUS are for investors who seek an equity-based return and who are willing to risk their principal, risk exposure to the worst performing of two underlyings and forgo current income in exchange for the upside leverage feature and the limited protection against loss that applies to a limited range of performance of the worst performing underlying, only if the final level of each underlying is greater than or equal to the respective trigger level. The Trigger PLUS are notes issued as part of MSFL’s Series A Global Medium-Term Notes program.
All payments are subject to our credit risk. If we default on our obligations, you could lose some or all of your investment. These Trigger PLUS are not secured obligations and you will not have any security interest in, or otherwise have any access to, any underlying reference asset or assets.
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SUMMARY TERMS
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Issuer:
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Morgan Stanley Finance LLC
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Guarantor:
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Morgan Stanley
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Maturity date:
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June 10, 2027
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Underlyings:
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The S&P 500® Index (the “SPX Index”) and the SPDR® S&P MidCap 400® ETF Trust (the “MDY Shares” or the “underlying shares”)
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Aggregate principal amount:
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$
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Payment at maturity:
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If the final level of each underlying is greater than its respective initial level,
$1,000 + ($1,000 × leverage factor × underlying percent change of the worst performing underlying)
If the final level of either of the underlyings is less than or equal to its respective initial level but the final level of each underlying is greater than or equal to its respective trigger level,
$1,000
If the final level of either of the underlyings is less than its respective trigger level,
$1,000 × underlying performance factor of the worst performing underlying
Under these circumstances, the payment at maturity will be less than the stated principal amount of $1,000, and will represent a loss of at least 10%, and possibly all, of your investment.
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Underlying percent change:
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With respect to each underlying, (final level – initial level) / initial level
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Worst performing underlying:
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The underlying with the lesser underlying percent change
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Underlying performance factor:
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With respect to each underlying, final level / initial level
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Initial level:
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With respect to the SPX Index, , which is the index closing value of such underlying on the pricing date
With respect to the MDY Shares, $ , which is the closing price of such underlying on the pricing date
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Final level:
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With respect to the SPX Index, the index closing value of such underlying on the valuation date
With respect to the MDY Shares, the closing price of such underlying on the valuation date times the relevant adjustment factor on such date
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Valuation date:
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June 7, 2027, subject to adjustment for non-index business days, non-trading days and certain market disruption events
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Leverage factor:
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At least 141%. The actual leverage factor will be determined on the pricing date.
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Adjustment factor:
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With respect to the MDY Shares, 1.0, subject to adjustment in the event of certain events affecting the MDY Shares
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Trigger level:
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With respect to the SPX Index, , which is 90% of its initial level
With respect to the MDY Shares, $ , which is 90% of its initial level
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Stated principal amount:
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$1,000 per Trigger PLUS
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Issue price:
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$1,000 per Trigger PLUS
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Pricing date:
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June 5, 2024
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Original issue date:
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June 10, 2024 (3 business days after the pricing date)
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CUSIP / ISIN:
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61776L7K7 / US61776L7K73
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Listing:
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The Trigger PLUS will not be listed on any securities exchange.
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Agent:
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Morgan Stanley & Co. LLC (“MS & Co.”), a wholly owned subsidiary of Morgan Stanley and an affiliate of MSFL. See “Supplemental information regarding plan of distribution; conflicts of interest.”
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Estimated value on the pricing date:
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Approximately $973.80 per Trigger PLUS, or within $45.00 of that estimate. See “Investment Summary” on page 2.
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Commissions and issue price:
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Price to public(1)
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Agent’s commissions and fees(2)
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Proceeds to us(3)
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Per Trigger PLUS
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$1,000
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$
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$
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Total
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$
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$
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$
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(1)The Trigger PLUS will be sold only to investors purchasing the Trigger PLUS in fee-based advisory accounts.
(2)MS & Co. expects to sell all of the Trigger PLUS that it purchases from us to an unaffiliated dealer at a price of $ per Trigger PLUS, for further sale to certain fee-based advisory accounts at the price to public of $1,000 per Trigger PLUS. MS & Co. will not receive a sales commission with respect to the Trigger PLUS. See “Supplemental information regarding plan of distribution; conflicts of interest.” For additional information, see “Plan of Distribution (Conflicts of Interest)” in the accompanying product supplement.
(3)See “Use of proceeds and hedging” on page 19.
The Trigger PLUS involve risks not associated with an investment in ordinary debt securities. See “Risk Factors” beginning on page 7.
The Securities and Exchange Commission and state securities regulators have not approved or disapproved these securities, or determined if this document or the accompanying product supplement, index supplement and prospectus is truthful or complete. Any representation to the contrary is a criminal offense.
The Trigger PLUS are not deposits or savings accounts and are not insured by the Federal Deposit Insurance Corporation or any other governmental agency or instrumentality, nor are they obligations of, or guaranteed by, a bank.
You should read this document together with the related product supplement, index supplement and prospectus, each of which can be accessed via the hyperlinks below. When you read the accompanying product supplement and index supplement, please note that all references in such supplements to the prospectus dated November 16, 2023, or to any sections therein, should refer instead to the accompanying prospectus dated April 12, 2024 or to the corresponding sections of such prospectus, as applicable. Please also see “Additional Terms of the Trigger PLUS” and “Additional Information About the Trigger PLUS” at the end of this document.
References to “we,” “us” and “our” refer to Morgan Stanley or MSFL, or Morgan Stanley and MSFL collectively, as the context requires.
Product Supplement for PLUS dated November 16, 2023 Index Supplement dated November 16, 2023
Prospectus dated April 12, 2024