[424B2] Morgan Stanley Prospectus Supplement
Morgan Stanley Finance LLC is offering Contingent Income Auto-Callable Securities linked to the common stock of Advanced Micro Devices, Inc. (AMD). Each $1,000 security pays a 12.00% p.a. contingent coupon, but only when AMD’s closing price on the relevant observation date is at or above the coupon barrier of $86.208 (60 % of the $143.68 initial level). If the stock closes below the barrier on any observation date, no coupon is paid for that month.
Starting six months after issuance, the notes are evaluated monthly for automatic early redemption. If AMD closes at or above the call threshold (100 % of the initial level) on any redemption determination date, investors receive par plus the applicable coupon and the notes terminate.
If the notes are not called and mature on 29 Jun 2028, principal is protected only if AMD’s final level is at or above the downside threshold of $86.208. Below that level, repayment is linearly reduced in proportion to AMD’s decline, exposing investors to a maximum 100 % loss of principal. The securities are unsecured and subject to the credit risk of Morgan Stanley and MSFL.
Issue size is $100,000 (100 notes). Investors pay a 2.75 % sales commission; Morgan Stanley’s estimated fair value is $954.30, implying an initial mark-up of roughly 4.6 %. The notes will not be listed, and secondary market prices may be lower than both issue price and estimated value.
Morgan Stanley Finance LLC offre titoli Contingent Income Auto-Callable legati alle azioni ordinarie di Advanced Micro Devices, Inc. (AMD). Ogni titolo da $1.000 paga un coupon condizionato del 12,00% annuo, ma solo se il prezzo di chiusura di AMD alla data di osservazione rilevante è pari o superiore alla barriera del coupon di $86,208 (60% del livello iniziale di $143,68). Se il titolo chiude al di sotto della barriera in una qualsiasi data di osservazione, non viene corrisposto alcun coupon per quel mese.
A partire da sei mesi dopo l’emissione, i titoli vengono valutati mensilmente per un riscatto anticipato automatico. Se AMD chiude pari o superiore alla soglia di call (100% del livello iniziale) in una qualsiasi data di determinazione del riscatto, gli investitori ricevono il valore nominale più il coupon applicabile e i titoli terminano.
Se i titoli non vengono richiamati e maturano il 29 giugno 2028, il capitale è protetto solo se il livello finale di AMD è pari o superiore alla soglia di downside di $86,208. Al di sotto di tale livello, il rimborso è ridotto linearmente in proporzione al calo di AMD, esponendo gli investitori a una perdita massima del 100% del capitale. I titoli sono non garantiti e soggetti al rischio di credito di Morgan Stanley e MSFL.
La dimensione dell’emissione è di $100.000 (100 titoli). Gli investitori pagano una commissione di vendita del 2,75%; il valore equo stimato da Morgan Stanley è di $954,30, implicando un mark-up iniziale di circa il 4,6%. I titoli non saranno quotati e i prezzi sul mercato secondario potrebbero essere inferiori sia al prezzo di emissione che al valore stimato.
Morgan Stanley Finance LLC ofrece Valores Auto-Callable de Ingresos Contingentes vinculados a las acciones ordinarias de Advanced Micro Devices, Inc. (AMD). Cada título de $1,000 paga un cupón contingente del 12.00% anual, pero solo cuando el precio de cierre de AMD en la fecha de observación correspondiente es igual o superior a la barrera del cupón de $86.208 (60 % del nivel inicial de $143.68). Si la acción cierra por debajo de la barrera en alguna fecha de observación, no se paga cupón ese mes.
A partir de seis meses después de la emisión, las notas se evalúan mensualmente para un rescate anticipado automático. Si AMD cierra en o por encima del umbral de call (100 % del nivel inicial) en una fecha de determinación de rescate, los inversores reciben el valor nominal más el cupón aplicable y las notas terminan.
Si las notas no son llamadas y vencen el 29 de junio de 2028, el principal está protegido solo si el nivel final de AMD está en o por encima del umbral de downside de $86.208. Por debajo de ese nivel, el reembolso se reduce linealmente en proporción a la caída de AMD, exponiendo a los inversores a una pérdida máxima del 100 % del principal. Los valores son no garantizados y están sujetos al riesgo crediticio de Morgan Stanley y MSFL.
El tamaño de la emisión es de $100,000 (100 notas). Los inversores pagan una comisión de venta del 2.75%; el valor justo estimado por Morgan Stanley es de $954.30, lo que implica un mark-up inicial de aproximadamente 4.6 %. Las notas no estarán listadas y los precios en el mercado secundario pueden ser inferiores tanto al precio de emisión como al valor estimado.
Morgan Stanley Finance LLC는 Advanced Micro Devices, Inc. (AMD) 보통주에 연계된 조건부 소득 자동상환 가능 증권을 제공합니다. 각 $1,000 증권은 연 12.00% 조건부 쿠폰을 지급하지만, AMD의 해당 관찰일 종가가 쿠폰 장벽 $86.208(초기 수준 $143.68의 60%) 이상일 때만 지급됩니다. 주가가 관찰일에 장벽 아래로 마감하면 그 달 쿠폰은 지급되지 않습니다.
발행 6개월 후부터 매월 자동 조기상환 여부를 평가합니다. AMD가 상환 결정일에 콜 기준선(초기 수준의 100%) 이상으로 마감하면 투자자는 원금과 해당 쿠폰을 받고 증권은 종료됩니다.
증권이 상환되지 않고 2028년 6월 29일에 만기될 경우, AMD의 최종 수준이 하락 기준선 $86.208 이상이어야 원금이 보호됩니다. 이 기준선 이하이면 상환금은 AMD 하락폭에 비례해 선형적으로 감소하며, 투자자는 원금 전액 손실 위험에 노출됩니다. 이 증권은 무담보이며 Morgan Stanley와 MSFL의 신용위험에 노출됩니다.
발행 규모는 $100,000(100 증권)입니다. 투자자는 2.75% 판매 수수료를 부담하며, Morgan Stanley의 추정 공정가치는 $954.30으로 초기 마크업은 약 4.6%입니다. 증권은 상장되지 않으며, 2차 시장 가격은 발행가 및 추정 가치보다 낮을 수 있습니다.
Morgan Stanley Finance LLC propose des titres à revenu conditionnel auto-remboursables liés aux actions ordinaires de Advanced Micro Devices, Inc. (AMD). Chaque titre de 1 000 $ verse un coupon conditionnel de 12,00 % par an, mais uniquement si le cours de clôture d’AMD à la date d’observation pertinente est supérieur ou égal à la barrière du coupon de 86,208 $ (60 % du niveau initial de 143,68 $). Si l’action clôture en dessous de la barrière à une date d’observation, aucun coupon n’est versé ce mois-là.
À partir de six mois après l’émission, les notes sont évaluées mensuellement pour un rachat anticipé automatique. Si AMD clôture au-dessus ou à égalité du seuil d’appel (100 % du niveau initial) à une date de détermination du rachat, les investisseurs reçoivent le pair plus le coupon applicable et les notes prennent fin.
Si les notes ne sont pas rappelées et arrivent à échéance le 29 juin 2028, le principal est protégé uniquement si le niveau final d’AMD est supérieur ou égal au seuil de baisse de 86,208 $. En dessous de ce niveau, le remboursement est réduit linéairement en fonction de la baisse d’AMD, exposant les investisseurs à une perte maximale de 100 % du principal. Les titres sont non garantis et soumis au risque de crédit de Morgan Stanley et MSFL.
Le montant de l’émission est de 100 000 $ (100 notes). Les investisseurs paient une commission de vente de 2,75 % ; la juste valeur estimée par Morgan Stanley est de 954,30 $, ce qui implique une majoration initiale d’environ 4,6 %. Les notes ne seront pas cotées et les prix sur le marché secondaire peuvent être inférieurs au prix d’émission et à la valeur estimée.
Morgan Stanley Finance LLC bietet Contingent Income Auto-Callable Securities an, die an die Stammaktien von Advanced Micro Devices, Inc. (AMD) gekoppelt sind. Jede $1.000-Anleihe zahlt einen 12,00 % p.a. bedingten Kupon, jedoch nur wenn der Schlusskurs von AMD am jeweiligen Beobachtungstag auf oder über der Kupon-Barriere von $86,208 (60 % des Anfangsniveaus von $143,68) liegt. Schließt die Aktie an einem Beobachtungstag unter der Barriere, wird für diesen Monat kein Kupon gezahlt.
Ab sechs Monaten nach Emission werden die Notes monatlich auf eine automatische vorzeitige Rückzahlung geprüft. Schließt AMD an einem Rückzahlungstermin auf oder über der Call-Schwelle (100 % des Anfangsniveaus), erhalten Anleger den Nennwert plus den entsprechenden Kupon, und die Notes enden.
Werden die Notes nicht zurückgerufen und laufen am 29. Juni 2028 aus, ist das Kapital nur geschützt, wenn AMD am Ende auf oder über der Downside-Schwelle von $86,208 liegt. Liegt der Schlusskurs darunter, wird die Rückzahlung linear reduziert proportional zum Kursrückgang von AMD, was Anleger einem maximalen Totalverlust aussetzt. Die Wertpapiere sind ungesichert und dem Kreditrisiko von Morgan Stanley und MSFL ausgesetzt.
Das Emissionsvolumen beträgt $100.000 (100 Notes). Anleger zahlen eine Verkaufsprovision von 2,75 %; der von Morgan Stanley geschätzte faire Wert liegt bei $954,30, was einen anfänglichen Aufschlag von etwa 4,6 % bedeutet. Die Notes werden nicht börslich gehandelt, und die Preise am Sekundärmarkt können unter dem Ausgabepreis und dem geschätzten Wert liegen.
- 12 % contingent coupon offers above-market income potential when AMD stays above the 60 % barrier.
- Automatic call at par plus coupon if AMD remains at or above the initial level, potentially shortening duration and enhancing annualised yield.
- Principal at risk below 60 % barrier; investors can lose up to 100 % of their investment.
- No participation in any upside above par if AMD shares rally strongly.
- Estimated value ($954.30) is 4.6 % below issue price, reflecting issuer mark-up and funding advantage.
- Notes are unsecured obligations of Morgan Stanley, adding credit-risk exposure.
- Illiquid secondary market; securities are not exchange-listed and may trade below fair value.
Insights
TL;DR: Income hinge on AMD ≥60 %; at-par call at 100 %; full downside below 60 %; small, routine issuance.
The structure offers an above-market 12 % coupon as compensation for significant equity and credit risk. The 60 % barrier provides moderate protection, but investors face dollar-for-dollar loss beneath it and forego any upside beyond par. Automatic call at 100 % limits duration, aligning MS’s funding cost with favourable market conditions. The $100k size is immaterial to Morgan Stanley’s balance sheet; therefore the filing is routine and non-dilutive. Estimated value discount (4.6 %) and lack of listing highlight liquidity risk. Overall impact on MS shareholders is negligible.
TL;DR: Attractive headline yield, but real value eroded by mark-up, illiquidity, and asymmetric payoff.
For yield-seeking clients, the 12 % contingent income is compelling, yet the payoff is skewed: capped upside, full downside beyond 40 % drop, and dependency on AMD volatility. The internal funding rate and commissions translate into a >45 bps annual cost versus estimated fair value. Given AMD’s historical volatility (~50 % 1-yr), probability of barrier breach is meaningful, potentially leaving investors coupon-less during stress periods when income is most needed. From an issuer perspective, this is inexpensive short-dated funding disguised as yield enhancement; the offering has no material EPS or capital impact on Morgan Stanley.
Morgan Stanley Finance LLC offre titoli Contingent Income Auto-Callable legati alle azioni ordinarie di Advanced Micro Devices, Inc. (AMD). Ogni titolo da $1.000 paga un coupon condizionato del 12,00% annuo, ma solo se il prezzo di chiusura di AMD alla data di osservazione rilevante è pari o superiore alla barriera del coupon di $86,208 (60% del livello iniziale di $143,68). Se il titolo chiude al di sotto della barriera in una qualsiasi data di osservazione, non viene corrisposto alcun coupon per quel mese.
A partire da sei mesi dopo l’emissione, i titoli vengono valutati mensilmente per un riscatto anticipato automatico. Se AMD chiude pari o superiore alla soglia di call (100% del livello iniziale) in una qualsiasi data di determinazione del riscatto, gli investitori ricevono il valore nominale più il coupon applicabile e i titoli terminano.
Se i titoli non vengono richiamati e maturano il 29 giugno 2028, il capitale è protetto solo se il livello finale di AMD è pari o superiore alla soglia di downside di $86,208. Al di sotto di tale livello, il rimborso è ridotto linearmente in proporzione al calo di AMD, esponendo gli investitori a una perdita massima del 100% del capitale. I titoli sono non garantiti e soggetti al rischio di credito di Morgan Stanley e MSFL.
La dimensione dell’emissione è di $100.000 (100 titoli). Gli investitori pagano una commissione di vendita del 2,75%; il valore equo stimato da Morgan Stanley è di $954,30, implicando un mark-up iniziale di circa il 4,6%. I titoli non saranno quotati e i prezzi sul mercato secondario potrebbero essere inferiori sia al prezzo di emissione che al valore stimato.
Morgan Stanley Finance LLC ofrece Valores Auto-Callable de Ingresos Contingentes vinculados a las acciones ordinarias de Advanced Micro Devices, Inc. (AMD). Cada título de $1,000 paga un cupón contingente del 12.00% anual, pero solo cuando el precio de cierre de AMD en la fecha de observación correspondiente es igual o superior a la barrera del cupón de $86.208 (60 % del nivel inicial de $143.68). Si la acción cierra por debajo de la barrera en alguna fecha de observación, no se paga cupón ese mes.
A partir de seis meses después de la emisión, las notas se evalúan mensualmente para un rescate anticipado automático. Si AMD cierra en o por encima del umbral de call (100 % del nivel inicial) en una fecha de determinación de rescate, los inversores reciben el valor nominal más el cupón aplicable y las notas terminan.
Si las notas no son llamadas y vencen el 29 de junio de 2028, el principal está protegido solo si el nivel final de AMD está en o por encima del umbral de downside de $86.208. Por debajo de ese nivel, el reembolso se reduce linealmente en proporción a la caída de AMD, exponiendo a los inversores a una pérdida máxima del 100 % del principal. Los valores son no garantizados y están sujetos al riesgo crediticio de Morgan Stanley y MSFL.
El tamaño de la emisión es de $100,000 (100 notas). Los inversores pagan una comisión de venta del 2.75%; el valor justo estimado por Morgan Stanley es de $954.30, lo que implica un mark-up inicial de aproximadamente 4.6 %. Las notas no estarán listadas y los precios en el mercado secundario pueden ser inferiores tanto al precio de emisión como al valor estimado.
Morgan Stanley Finance LLC는 Advanced Micro Devices, Inc. (AMD) 보통주에 연계된 조건부 소득 자동상환 가능 증권을 제공합니다. 각 $1,000 증권은 연 12.00% 조건부 쿠폰을 지급하지만, AMD의 해당 관찰일 종가가 쿠폰 장벽 $86.208(초기 수준 $143.68의 60%) 이상일 때만 지급됩니다. 주가가 관찰일에 장벽 아래로 마감하면 그 달 쿠폰은 지급되지 않습니다.
발행 6개월 후부터 매월 자동 조기상환 여부를 평가합니다. AMD가 상환 결정일에 콜 기준선(초기 수준의 100%) 이상으로 마감하면 투자자는 원금과 해당 쿠폰을 받고 증권은 종료됩니다.
증권이 상환되지 않고 2028년 6월 29일에 만기될 경우, AMD의 최종 수준이 하락 기준선 $86.208 이상이어야 원금이 보호됩니다. 이 기준선 이하이면 상환금은 AMD 하락폭에 비례해 선형적으로 감소하며, 투자자는 원금 전액 손실 위험에 노출됩니다. 이 증권은 무담보이며 Morgan Stanley와 MSFL의 신용위험에 노출됩니다.
발행 규모는 $100,000(100 증권)입니다. 투자자는 2.75% 판매 수수료를 부담하며, Morgan Stanley의 추정 공정가치는 $954.30으로 초기 마크업은 약 4.6%입니다. 증권은 상장되지 않으며, 2차 시장 가격은 발행가 및 추정 가치보다 낮을 수 있습니다.
Morgan Stanley Finance LLC propose des titres à revenu conditionnel auto-remboursables liés aux actions ordinaires de Advanced Micro Devices, Inc. (AMD). Chaque titre de 1 000 $ verse un coupon conditionnel de 12,00 % par an, mais uniquement si le cours de clôture d’AMD à la date d’observation pertinente est supérieur ou égal à la barrière du coupon de 86,208 $ (60 % du niveau initial de 143,68 $). Si l’action clôture en dessous de la barrière à une date d’observation, aucun coupon n’est versé ce mois-là.
À partir de six mois après l’émission, les notes sont évaluées mensuellement pour un rachat anticipé automatique. Si AMD clôture au-dessus ou à égalité du seuil d’appel (100 % du niveau initial) à une date de détermination du rachat, les investisseurs reçoivent le pair plus le coupon applicable et les notes prennent fin.
Si les notes ne sont pas rappelées et arrivent à échéance le 29 juin 2028, le principal est protégé uniquement si le niveau final d’AMD est supérieur ou égal au seuil de baisse de 86,208 $. En dessous de ce niveau, le remboursement est réduit linéairement en fonction de la baisse d’AMD, exposant les investisseurs à une perte maximale de 100 % du principal. Les titres sont non garantis et soumis au risque de crédit de Morgan Stanley et MSFL.
Le montant de l’émission est de 100 000 $ (100 notes). Les investisseurs paient une commission de vente de 2,75 % ; la juste valeur estimée par Morgan Stanley est de 954,30 $, ce qui implique une majoration initiale d’environ 4,6 %. Les notes ne seront pas cotées et les prix sur le marché secondaire peuvent être inférieurs au prix d’émission et à la valeur estimée.
Morgan Stanley Finance LLC bietet Contingent Income Auto-Callable Securities an, die an die Stammaktien von Advanced Micro Devices, Inc. (AMD) gekoppelt sind. Jede $1.000-Anleihe zahlt einen 12,00 % p.a. bedingten Kupon, jedoch nur wenn der Schlusskurs von AMD am jeweiligen Beobachtungstag auf oder über der Kupon-Barriere von $86,208 (60 % des Anfangsniveaus von $143,68) liegt. Schließt die Aktie an einem Beobachtungstag unter der Barriere, wird für diesen Monat kein Kupon gezahlt.
Ab sechs Monaten nach Emission werden die Notes monatlich auf eine automatische vorzeitige Rückzahlung geprüft. Schließt AMD an einem Rückzahlungstermin auf oder über der Call-Schwelle (100 % des Anfangsniveaus), erhalten Anleger den Nennwert plus den entsprechenden Kupon, und die Notes enden.
Werden die Notes nicht zurückgerufen und laufen am 29. Juni 2028 aus, ist das Kapital nur geschützt, wenn AMD am Ende auf oder über der Downside-Schwelle von $86,208 liegt. Liegt der Schlusskurs darunter, wird die Rückzahlung linear reduziert proportional zum Kursrückgang von AMD, was Anleger einem maximalen Totalverlust aussetzt. Die Wertpapiere sind ungesichert und dem Kreditrisiko von Morgan Stanley und MSFL ausgesetzt.
Das Emissionsvolumen beträgt $100.000 (100 Notes). Anleger zahlen eine Verkaufsprovision von 2,75 %; der von Morgan Stanley geschätzte faire Wert liegt bei $954,30, was einen anfänglichen Aufschlag von etwa 4,6 % bedeutet. Die Notes werden nicht börslich gehandelt, und die Preise am Sekundärmarkt können unter dem Ausgabepreis und dem geschätzten Wert liegen.
Pricing Supplement No. 8,962
Registration Statement Nos. 333-275587; 333-275587-01
Dated June 26, 2025
Filed pursuant to Rule 424(b)(2)
Morgan Stanley Finance LLC
Structured Investments
Contingent Income Auto-Callable Securities due June 29, 2028
Based on the Performance of the Common Stock of Advanced Micro Devices, Inc.
Fully and Unconditionally Guaranteed by Morgan Stanley
Principal at Risk Securities
￭The securities are unsecured obligations of Morgan Stanley Finance LLC (“MSFL”) and are fully and unconditionally guaranteed by Morgan Stanley. The securities have the terms described in the accompanying product supplement and prospectus, as supplemented or modified by this document. The securities do not guarantee the repayment of principal and do not provide for the regular payment of interest.
￭Contingent coupon. The securities will pay a contingent coupon but only if the closing level of the underlier is greater than or equal to the coupon barrier level on the related observation date. However, if the closing level of the underlier is less than the coupon barrier level on any observation date, we will pay no interest with respect to the related interest period.
￭Automatic early redemption. The securities will be automatically redeemed if the closing level of the underlier is greater than or equal to the call threshold level on any redemption determination date for an early redemption payment equal to the stated principal amount plus the contingent coupon with respect to the related interest period. No further payments will be made on the securities once they have been automatically redeemed.
￭Payment at maturity. If the securities have not been automatically redeemed prior to maturity and the final level is greater than or equal to the downside threshold level, investors will receive (in addition to the contingent coupon with respect to the final observation date, if payable) the stated principal amount at maturity. If, however, the final level is less than the downside threshold level, investors will lose 1% for every 1% decline in the level of the underlier over the term of the securities. Under these circumstances, the payment at maturity will be significantly less than the stated principal amount and could be zero.
￭The securities are for investors who seek an opportunity to earn interest at a potentially above-market rate in exchange for the risk of losing a significant portion or all of their principal and the risk of receiving no coupons over the entire term of the securities. You will not participate in any appreciation of the underlier. Investors in the securities must be willing to accept the risk of losing their entire initial investment. The securities 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 securities 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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FINAL TERMS |
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Issuer: |
Morgan Stanley Finance LLC |
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Guarantor: |
Morgan Stanley |
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Stated principal amount: |
$1,000 per security |
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Issue price: |
$1,000 per security (see “Commissions and issue price” below) |
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Aggregate principal amount: |
$100,000 |
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Underlier: |
Advanced Micro Devices, Inc. common stock (the “underlying stock”) |
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Strike date: |
June 26, 2025 |
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Pricing date: |
June 26, 2025 |
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Original issue date: |
June 30, 2025 |
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Final observation date: |
June 26, 2028, subject to postponement for non-trading days and certain market disruption events |
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Maturity date: |
June 29, 2028 |
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Terms continued on the following page |
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Agent: |
Morgan Stanley & Co. LLC (“MS & Co.”), an affiliate of MSFL and a wholly owned subsidiary of Morgan Stanley. See “Supplemental information regarding plan of distribution; conflicts of interest.” |
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Estimated value on the pricing date: |
$954.30 per security. See “Estimated Value of the Securities” on page 4. |
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Commissions and issue price: |
Price to public |
Agent’s commissions and fees(1)(2) |
Proceeds to us(3) |
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Per security |
$1,000 |
$27.50 |
$972.50 |
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Total |
$100,000 |
$2,750 |
$97,250 |
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(1)Selected dealers and their financial advisors will collectively receive from the agent, MS & Co., a fixed sales commission of $27.50 for each security they sell; provided that dealers selling to investors purchasing the securities in fee-based advisory accounts will not receive a sales commission with respect to such securities. 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.
(2)The price to public for investors purchasing the securities in fee-based advisory accounts will be $972.50 per security. In addition, selected dealers and their financial advisors may receive a structuring fee of up to $6.25 for each security from the agent or its affiliates.
(3)See “Use of Proceeds and Hedging” in the accompanying product supplement.
The securities 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 and prospectus is truthful or complete. Any representation to the contrary is a criminal offense.
The securities 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 and prospectus, each of which can be accessed via the hyperlinks below. Please also see “Additional Terms of the Securities” and “Additional Information About the Securities” 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 Principal at Risk Securities dated February 7, 2025 Prospectus dated April 12, 2024
Morgan Stanley Finance LLC
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Contingent Income Auto-Callable Securities Principal at Risk Securities |
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Terms continued from the previous page |
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Automatic early redemption: |
The securities are not subject to automatic early redemption until the first redemption determination date. If, on any redemption determination date, the closing level of the underlier is greater than or equal to the call threshold level, the securities will be automatically redeemed for the early redemption payment on the related early redemption date. No further payments will be made on the securities once they have been automatically redeemed. The securities will not be redeemed on any early redemption date if the closing level of the underlier is less than the call threshold level on the related redemption determination date. |
|
First redemption determination date: |
December 26, 2025. Under no circumstances will the securities be redeemed prior to the first redemption determination date. |
|
Redemption determination dates: |
December 26, 2025, January 26, 2026, February 26, 2026, March 26, 2026, April 27, 2026, May 26, 2026, June 26, 2026, July 27, 2026, August 26, 2026, September 28, 2026, October 26, 2026, November 27, 2026, December 28, 2026, January 26, 2027, February 26, 2027, March 29, 2027, April 26, 2027, May 26, 2027, June 28, 2027, July 26, 2027, August 26, 2027, September 27, 2027, October 26, 2027, November 26, 2027, December 27, 2027, January 26, 2028, February 28, 2028, March 27, 2028, April 26, 2028 and May 26, 2028, subject to postponement for non-trading days and certain market disruption events |
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Call threshold level: |
$143.68, which is 100% of the initial level |
|
Early redemption payment: |
The stated principal amount plus the contingent coupon with respect to the related interest period |
|
Early redemption dates: |
December 31, 2025, January 29, 2026, March 3, 2026, March 31, 2026, April 30, 2026, May 29, 2026, July 1, 2026, July 30, 2026, August 31, 2026, October 1, 2026, October 29, 2026, December 2, 2026, December 31, 2026, January 29, 2027, March 3, 2027, April 1, 2027, April 29, 2027, June 1, 2027, July 1, 2027, July 29, 2027, August 31, 2027, September 30, 2027, October 29, 2027, December 1, 2027, December 30, 2027, January 31, 2028, March 2, 2028, March 30, 2028, May 1, 2028 and June 1, 2028 |
|
Contingent coupon: |
A contingent coupon at an annual rate of 12.00% will be paid on the securities on each coupon payment date but only if the closing level of the underlier is greater than or equal to the coupon barrier level on the related observation date. If, on any observation date, the closing level of the underlier is less than the coupon barrier level, we will pay no coupon with respect to the applicable interest period. |
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Coupon payment dates: |
As set forth under “Observation Dates and Coupon Payment Dates” below. If any coupon payment date is not a business day, the coupon payment with respect to such date, if any, will be made on the next succeeding business day and no adjustment will be made to any coupon payment made on that succeeding business day. The coupon payment, if any, with respect to the final observation date shall be made on the maturity date. |
|
Coupon barrier level: |
$86.208, which is 60% of the initial level |
|
Observation dates: |
As set forth under “Observation Dates and Coupon Payment Dates” below, subject to postponement for non-trading days and certain market disruption events |
|
Payment at maturity per security: |
If the securities have not been automatically redeemed prior to maturity, investors will receive (in addition to the contingent coupon with respect to the final observation date, if payable) a payment at maturity determined as follows: •If the final level is greater than or equal to the downside threshold level: stated principal amount •If the final level is less than the downside threshold level: stated principal amount × performance factor Under these circumstances, the payment at maturity will be significantly less than the stated principal amount and could be zero. |
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Final level: |
The closing level of the underlier on the final observation date |
|
Downside threshold level: |
$86.208, which is 60% of the initial level |
|
Performance factor: |
final level / initial level |
|
Initial level: |
$143.68, which is the closing level of the underlier on the strike date |
|
Closing level: |
“Closing level” and “adjustment factor” have the meanings set forth under “General Terms of the Securities—Some Definitions” in the accompanying product supplement. |
|
CUSIP: |
61778K4V6 |
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ISIN: |
US61778K4V63 |
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Listing: |
The securities will not be listed on any securities exchange. |
Observation Dates and Coupon Payment Dates
|
Observation Dates |
Coupon Payment Dates |
|
July 28, 2025 |
July 31, 2025 |
|
August 26, 2025 |
August 29, 2025 |
|
September 26, 2025 |
October 1, 2025 |
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|
Observation Dates |
Coupon Payment Dates |
|
October 27, 2025 |
October 30, 2025 |
|
November 26, 2025 |
December 2, 2025 |
|
December 26, 2025 |
December 31, 2025 |
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January 26, 2026 |
January 29, 2026 |
|
February 26, 2026 |
March 3, 2026 |
|
March 26, 2026 |
March 31, 2026 |
|
April 27, 2026 |
April 30, 2026 |
|
May 26, 2026 |
May 29, 2026 |
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June 26, 2026 |
July 1, 2026 |
|
July 27, 2026 |
July 30, 2026 |
|
August 26, 2026 |
August 31, 2026 |
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September 28, 2026 |
October 1, 2026 |
|
October 26, 2026 |
October 29, 2026 |
|
November 27, 2026 |
December 2, 2026 |
|
December 28, 2026 |
December 31, 2026 |
|
January 26, 2027 |
January 29, 2027 |
|
February 26, 2027 |
March 3, 2027 |
|
March 29, 2027 |
April 1, 2027 |
|
April 26, 2027 |
April 29, 2027 |
|
May 26, 2027 |
June 1, 2027 |
|
June 28, 2027 |
July 1, 2027 |
|
July 26, 2027 |
July 29, 2027 |
|
August 26, 2027 |
August 31, 2027 |
|
September 27, 2027 |
September 30, 2027 |
|
October 26, 2027 |
October 29, 2027 |
|
November 26, 2027 |
December 1, 2027 |
|
December 27, 2027 |
December 30, 2027 |
|
January 26, 2028 |
January 31, 2028 |
|
February 28, 2028 |
March 2, 2028 |
|
March 27, 2028 |
March 30, 2028 |
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April 26, 2028 |
May 1, 2028 |
|
May 26, 2028 |
June 1, 2028 |
|
June 26, 2028 (final observation date) |
June 29, 2028 (maturity date) |
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Estimated Value of the Securities
The original issue price of each security is $1,000. This price includes costs associated with issuing, selling, structuring and hedging the securities, which are borne by you, and, consequently, the estimated value of the securities on the pricing date is less than $1,000. Our estimate of the value of the securities as determined on the pricing date is set forth on the cover of this document.
What goes into the estimated value on the pricing date?
In valuing the securities on the pricing date, we take into account that the securities comprise both a debt component and a performance-based component linked to the underlier. The estimated value of the securities is determined using our own pricing and valuation models, market inputs and assumptions relating to the underlier, instruments based on the underlier, volatility and other factors including current and expected interest rates, as well as an interest rate related to our secondary market credit spread, which is the implied interest rate at which our conventional fixed rate debt trades in the secondary market.
What determines the economic terms of the securities?
In determining the economic terms of the securities, we use an internal funding rate, which is likely to be lower than our secondary market credit spreads and therefore advantageous to us. If the issuing, selling, structuring and hedging costs borne by you were lower or if the internal funding rate were higher, one or more of the economic terms of the securities would be more favorable to you.
What is the relationship between the estimated value on the pricing date and the secondary market price of the securities?
The price at which MS & Co. purchases the securities in the secondary market, absent changes in market conditions, including those related to the underlier, may vary from, and be lower than, the estimated value on the pricing date, because the secondary market price takes into account our secondary market credit spread as well as the bid-offer spread that MS & Co. would charge in a secondary market transaction of this type and other factors. However, because the costs associated with issuing, selling, structuring and hedging the securities are not fully deducted upon issuance, to the extent that MS & Co. may buy or sell the securities in the secondary market during the amortization period specified herein, absent changes in market conditions, including those related to the underlier, and to our secondary market credit spreads, it would do so based on values higher than the estimated value. We expect that those higher values will also be reflected in your brokerage account statements.
MS & Co. may, but is not obligated to, make a market in the securities, and, if it once chooses to make a market, may cease doing so at any time.
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Hypothetical Examples
The following hypothetical examples illustrate how to determine whether the securities will be automatically redeemed with respect to a redemption determination date, whether a contingent coupon is payable with respect to an observation date and how to calculate the payment at maturity if the securities have not been automatically redeemed prior to maturity. The following examples are for illustrative purposes only. Whether the securities are automatically redeemed prior to maturity will be determined by reference to the closing level of the underlier on each redemption determination date. Whether you receive a contingent coupon will be determined by reference to the closing level of the underlier on each observation date. The payment at maturity will be determined by reference to the closing level of the underlier on the final observation date. The actual initial level, call threshold level, coupon barrier level and downside threshold level were determined on the strike date. All payments on the securities are subject to our credit risk. The numbers in the hypothetical examples below may have been rounded for ease of analysis. The below examples are based on the following terms:
|
Stated principal amount: |
$1,000 per security |
|
Hypothetical initial level: |
$100.00* |
|
Hypothetical call threshold level: |
$100.00, which is 100% of the hypothetical initial level |
|
Hypothetical coupon barrier level: |
$60.00, which is 60% of the hypothetical initial level |
|
Hypothetical downside threshold level: |
$60.00, which is 60% of the hypothetical initial level |
|
Contingent coupon: |
12.00% per annum (corresponding to approximately $10.00 per interest period per security). The actual contingent coupon will be an amount determined by the calculation agent based on the number of days in the applicable payment period, calculated on a 30/360 day-count basis. The hypothetical contingent coupon of $10.00 is used in these examples for ease of analysis. |
*The hypothetical initial level of $100.00 for the underlier has been chosen for illustrative purposes only and does not represent the actual initial level of the underlier. Please see “Historical Information” below for historical data regarding the actual closing levels of the underlier.
How to determine whether the securities will be automatically redeemed with respect to a redemption determination date:
|
|
Closing Level of the Underlier |
Early Redemption Payment |
|
Hypothetical Redemption Determination Date #1 |
$65.00 (less than the call threshold level) |
N/A |
|
Hypothetical Redemption Determination Date #2 |
$110.00 (greater than or equal to the call threshold level) |
$1,000 + $10.00 (the stated principal amount + the contingent coupon with respect to the related interest period) For more information, please see “How to determine whether a contingent coupon is payable with respect to an observation date (if the securities have not been previously automatically redeemed)” below. |
On hypothetical redemption determination date #1, because the closing level of the underlier is less than the call threshold level, the securities are not automatically redeemed on the related early redemption date.
On hypothetical redemption determination date #2, because the closing level of the underlier is greater than or equal to the call threshold level, the securities are automatically redeemed on the related early redemption date for an early redemption payment equal to the stated principal amount plus the contingent coupon with respect to the related interest period. No further payments are made on the securities once they have been automatically redeemed.
If the closing level of the underlier is less than the call threshold level on each redemption determination date, the securities will not be automatically redeemed prior to maturity.
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How to determine whether a contingent coupon is payable with respect to an observation date (if the securities have not been previously automatically redeemed):
|
|
Closing Level of the Underlier |
Payment per Security |
|
Hypothetical Observation Date #1 |
$90.00 (greater than or equal to the coupon barrier level) |
$10.00 |
|
Hypothetical Observation Date #2 |
$30.00 (less than the coupon barrier level) |
$0 |
|
Hypothetical Observation Date #3 |
$120.00 (greater than or equal to the coupon barrier level) |
$1,000 + $10.00 (the stated principal amount + the contingent coupon with respect to the related interest period) For more information, please see “How to determine whether the securities will be automatically redeemed with respect to a redemption determination date” above. |
On hypothetical observation date #1, because the closing level of the underlier is greater than or equal to the coupon barrier level, the contingent coupon is paid on the related coupon payment date.
On hypothetical observation date #2, because the closing level of the underlier is less than the coupon barrier level, no contingent coupon is paid on the related coupon payment date.
On hypothetical observation date #3, the closing level of the underlier is greater than or equal to the coupon barrier level. Because the closing level of the underlier is also greater than or equal to the call threshold level, the securities are automatically redeemed for an early redemption payment equal to the stated principal amount plus the contingent coupon with respect to the related interest period. No further payments are made on the securities once they have been automatically redeemed.
If the closing level of the underlier is less than the coupon barrier level on each observation date, you will not receive any contingent coupons for the entire term of the securities.
How to calculate the payment at maturity (if the securities have not been automatically redeemed):
The hypothetical examples below illustrate how to calculate the payment at maturity if the securities have not been automatically redeemed prior to maturity.
|
|
Final Level |
Payment at Maturity per Security |
|
Example #1 |
$130.00 (greater than or equal to the downside threshold level) |
$1,000 + $10.00 (the stated principal amount + the contingent coupon with respect to the final observation date) For more information, please see “How to determine whether a contingent coupon is payable with respect to an observation date (if the securities have not been previously automatically redeemed)” above. |
|
Example #2 |
$20.00 (less than the downside threshold level) |
$1,000 × performance factor = $1,000 × ($20.00 / $100.00) = $200.00 |
In example #1, the final level is greater than or equal to the downside threshold level. Therefore, investors receive at maturity the stated principal amount. Because the final level is also greater than or equal to the coupon barrier level, investors receive the contingent coupon with respect to the final observation date. Investors do not participate in any appreciation of the underlier.
In example #2, the final level is less than the downside threshold level. Therefore, investors receive at maturity a payment that reflects a loss of 1% of principal for each 1% decline in the level of the underlier. Moreover, because the final level is also less than the coupon barrier level, investors do not receive a contingent coupon with respect to the final observation date.
If the securities have not been automatically redeemed prior to maturity and the final level is less than the downside threshold level, you will be exposed to the negative performance of the underlier at maturity, and your payment at maturity will be significantly less than the stated principal amount of the securities and could be zero.
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Risk Factors
This section describes the material risks relating to the securities. For further discussion of these and other risks, you should read the section entitled “Risk Factors” in the accompanying product supplement and prospectus. We also urge you to consult with your investment, legal, tax, accounting and other advisers in connection with your investment in the securities.
Risks Relating to an Investment in the Securities
￭The securities do not guarantee the return of any principal. The terms of the securities differ from those of ordinary debt securities in that they do not guarantee the repayment of any principal. If the securities have not been automatically redeemed prior to maturity and the final level is less than the downside threshold level, the payout at maturity will be an amount in cash that is significantly less than the stated principal amount of each security, and you will lose an amount proportionate to the full decline in the level of the underlier over the term of the securities. There is no minimum payment at maturity on the securities, and, accordingly, you could lose your entire initial investment in the securities.
￭The securities do not provide for the regular payment of interest. The terms of the securities differ from those of ordinary debt securities in that they do not provide for the regular payment of interest. Instead, the securities will pay a contingent coupon on a coupon payment date but only if the closing level of the underlier is greater than or equal to the coupon barrier level on the related observation date. However, if the closing level of the underlier is less than the coupon barrier level on any observation date, we will pay no coupon with respect to the applicable interest period. It is possible that the closing level of the underlier will remain below the coupon barrier level for extended periods of time or even throughout the entire term of the securities so that you will receive few or no contingent coupons. If you do not earn sufficient contingent coupons over the term of the securities, the overall return on the securities may be less than the amount that would be paid on a conventional debt security of ours of comparable maturity.
￭Payment of the contingent coupon is based on the closing level of the underlier on only the related observation date at the end of the related interest period. Whether the contingent coupon will be paid on any coupon payment date will be determined at the end of the related interest period based on the closing level of the underlier on the related observation date. As a result, you will not know whether you will receive the contingent coupon on a coupon payment date until near the end of the relevant interest period. Moreover, because the contingent coupon is based solely on the closing level of the underlier on the observation dates, if the closing level of the underlier on any observation date is less than the coupon barrier level, you will receive no coupon with respect to the related interest period, even if the closing level of the underlier was greater than or equal to the coupon barrier level on other days during that interest period.
￭Investors will not participate in any appreciation in the value of the underlier. Investors will not participate in any appreciation in the value of the underlier from the strike date to the final observation date, and the return on the securities will be limited to the contingent coupons that are paid with respect to the observation dates on which the closing level of the underlier is greater than or equal to the coupon barrier level. It is possible that the closing level of the underlier will remain below the coupon barrier level for extended periods of time or even throughout the entire term of the securities so that you will receive few or no contingent coupons.
￭The securities are subject to early redemption risk. The term of your investment in the securities may be shortened due to the automatic early redemption feature of the securities. If the securities are automatically redeemed prior to maturity, you will receive no further payments on the securities, may be forced to invest in a lower interest rate environment and may not be able to reinvest at comparable terms or returns. However, under no circumstances will the securities be redeemed prior to the first redemption determination date.
￭The market price of the securities may be influenced by many unpredictable factors. Several factors, many of which are beyond our control, will influence the value of the securities in the secondary market and the price at which MS & Co. may be willing to purchase or sell the securities in the secondary market. We expect that generally the value of the underlier at any time will affect the value of the securities more than any other single factor. Other factors that may influence the value of the securities include:
othe volatility (frequency and magnitude of changes in value) of the underlier;
ointerest and yield rates in the market;
odividend rates on the underlier;
ogeopolitical conditions and economic, financial, political, regulatory or judicial events that affect the underlier or equity markets generally;
othe availability of comparable instruments;
othe occurrence of certain events affecting the underlier that may or may not require an adjustment to the adjustment factor;
othe time remaining until the securities mature; and
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oany actual or anticipated changes in our credit ratings or credit spreads.
Some or all of these factors will influence the price that you will receive if you sell your securities prior to maturity. Generally, the longer the time remaining to maturity, the more the market price of the securities will be affected by the other factors described above. For example, you may have to sell your securities at a substantial discount from the stated principal amount if, at the time of sale, the closing level of the underlier is at, below or not sufficiently above the downside threshold level and/or coupon barrier level, or if market interest rates rise.
You can review the historical closing levels of the underlier in the section of this document called “Historical Information.” You cannot predict the future performance of the underlier based on its historical performance. The value of the underlier may be, and has recently been, volatile, and we can give you no assurance that the volatility will lessen. There can be no assurance that the closing level of the underlier will be greater than or equal to the coupon barrier level on any observation date so that you will receive a contingent coupon with respect to the applicable interest period, or that the final level will be greater than or equal to the downside threshold level so that you do not suffer a significant loss on your initial investment in the securities.
￭The securities are subject to our credit risk, and any actual or anticipated changes to our credit ratings or credit spreads may adversely affect the market value of the securities. You are dependent on our ability to pay all amounts due on the securities, and, therefore, you are subject to our credit risk. The securities are not guaranteed by any other entity. If we default on our obligations under the securities, your investment would be at risk and you could lose some or all of your investment. As a result, the market value of the securities prior to maturity will be affected by changes in the market’s view of our creditworthiness. Any actual or anticipated decline in our credit ratings or increase in the credit spreads charged by the market for taking our credit risk is likely to adversely affect the market value of the securities.
￭As a finance subsidiary, MSFL has no independent operations and will have no independent assets. As a finance subsidiary, MSFL has no independent operations beyond the issuance and administration of its securities and will have no independent assets available for distributions to holders of MSFL securities if they make claims in respect of such securities in a bankruptcy, resolution or similar proceeding. Accordingly, any recoveries by such holders will be limited to those available under the related guarantee by Morgan Stanley and that guarantee will rank pari passu with all other unsecured, unsubordinated obligations of Morgan Stanley. Holders will have recourse only to a single claim against Morgan Stanley and its assets under the guarantee. Holders of securities issued by MSFL should accordingly assume that in any such proceedings they would not have any priority over and should be treated pari passu with the claims of other unsecured, unsubordinated creditors of Morgan Stanley, including holders of Morgan Stanley-issued securities.
￭The rate we are willing to pay for securities of this type, maturity and issuance size is likely to be lower than the rate implied by our secondary market credit spreads and advantageous to us. Both the lower rate and the inclusion of costs associated with issuing, selling, structuring and hedging the securities in the original issue price reduce the economic terms of the securities, cause the estimated value of the securities to be less than the original issue price and will adversely affect secondary market prices. Assuming no change in market conditions or any other relevant factors, the prices, if any, at which dealers, including MS & Co., may be willing to purchase the securities in secondary market transactions will likely be significantly lower than the original issue price, because secondary market prices will exclude the issuing, selling, structuring and hedging-related costs that are included in the original issue price and borne by you and because the secondary market prices will reflect our secondary market credit spreads and the bid-offer spread that any dealer would charge in a secondary market transaction of this type as well as other factors.
The inclusion of the costs of issuing, selling, structuring and hedging the securities in the original issue price and the lower rate we are willing to pay as issuer make the economic terms of the securities less favorable to you than they otherwise would be.
However, because the costs associated with issuing, selling, structuring and hedging the securities are not fully deducted upon issuance, to the extent that MS & Co. may buy or sell the securities in the secondary market during the amortization period specified herein, absent changes in market conditions, including those related to the underlier, and to our secondary market credit spreads, it would do so based on values higher than the estimated value, and we expect that those higher values will also be reflected in your brokerage account statements.
￭The estimated value of the securities is determined by reference to our pricing and valuation models, which may differ from those of other dealers and is not a maximum or minimum secondary market price. These pricing and valuation models are proprietary and rely in part on subjective views of certain market inputs and certain assumptions about future events, which may prove to be incorrect. As a result, because there is no market-standard way to value these types of securities, our models may yield a higher estimated value of the securities than those generated by others, including other dealers in the market, if they attempted to value the securities. In addition, the estimated value on the pricing date does not represent a minimum or maximum price at which dealers, including MS & Co., would be willing to purchase your securities in the secondary market (if any exists) at any time. The value of your securities at any time after the date of this document will vary based on many factors that cannot be predicted with accuracy, including our creditworthiness and changes in market conditions. See also “The market price of the securities may be influenced by many unpredictable factors” above.
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￭The securities will not be listed on any securities exchange and secondary trading may be limited. The securities will not be listed on any securities exchange. Therefore, there may be little or no secondary market for the securities. MS & Co. may, but is not obligated to, make a market in the securities and, if it once chooses to make a market, may cease doing so at any time. When it does make a market, it will generally do so for transactions of routine secondary market size at prices based on its estimate of the current value of the securities, taking into account its bid/offer spread, our credit spreads, market volatility, the notional size of the proposed sale, the cost of unwinding any related hedging positions, the time remaining to maturity and the likelihood that it will be able to resell the securities. Even if there is a secondary market, it may not provide enough liquidity to allow you to trade or sell the securities easily. Since other broker-dealers may not participate significantly in the secondary market for the securities, the price at which you may be able to trade your securities is likely to depend on the price, if any, at which MS & Co. is willing to transact. If, at any time, MS & Co. were to cease making a market in the securities, it is likely that there would be no secondary market for the securities. Accordingly, you should be willing to hold your securities to maturity.
￭As discussed in more detail in the accompanying product supplement, investing in the securities is not equivalent to investing in the underlier(s).
￭The U.S. federal income tax consequences of an investment in the securities are uncertain. There is no direct legal authority regarding the proper U.S. federal income tax treatment of the securities, and significant aspects of the tax treatment of the securities are uncertain. Moreover, non-U.S. investors should note that persons having withholding responsibility in respect of the securities are, absent an exception, expected to withhold on any coupon paid to a non-U.S. investor, generally at a rate of 30%. We will not pay any additional amounts in respect of such withholding. You should review carefully the section entitled “United States Federal Income Tax Considerations” herein, in combination with the section entitled “United States Federal Income Tax Considerations” in the accompanying product supplement, and consult your tax adviser regarding the U.S. federal income tax consequences of an investment in the securities.
Risks Relating to the Underlier(s)
￭Because your return on the securities will depend upon the performance of the underlier(s), the securities are subject to the following risk(s), as discussed in more detail in the accompanying product supplement.
oWe have no affiliation with any underlying stock issuer.
oWe may engage in business with or involving any underlying stock issuer without regard to your interests.
oThe anti-dilution adjustments the calculation agent is required to make do not cover every corporate event that could affect an underlying stock.
Risks Relating to Conflicts of Interest
In engaging in certain activities described below and as discussed in more detail in the accompanying product supplement, our affiliates may take actions that may adversely affect the value of and your return on the securities, and in so doing they will have no obligation to consider your interests as an investor in the securities.
￭The calculation agent, which is a subsidiary of Morgan Stanley and an affiliate of MSFL, will make determinations with respect to the securities. As calculation agent, MS & Co. will make any determinations necessary to calculate any payment(s) on the securities. Moreover, certain determinations made by MS & Co., in its capacity as calculation agent, may require it to exercise discretion and make subjective judgments, which may adversely affect your return on the securities. In addition, MS & Co. has determined the estimated value of the securities on the pricing date.
￭Hedging and trading activity by our affiliates could potentially adversely affect the value of the securities.
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Historical Information
Advanced Micro Devices, Inc. Overview
Bloomberg Ticker Symbol: AMD
Advanced Micro Devices, Inc. manufactures semiconductor products. The underlier is registered under the Securities Exchange Act of 1934, as amended. Information provided to or filed with the Securities and Exchange Commission by the underlying stock issuer pursuant to the Securities Exchange Act of 1934, as amended, can be located by reference to Securities and Exchange Commission file number 001-07882 through the Securities and Exchange Commission’s website at www.sec.gov. In addition, information regarding the underlying stock issuer may be obtained from other sources including, but not limited to, press releases, newspaper articles and other publicly disseminated documents. Neither we nor the agent makes any representation that such publicly available documents or any other publicly available information regarding the underlying stock issuer is accurate or complete.
The closing level of the underlier on June 26, 2025 was $143.68. The following graph sets forth the daily closing levels of the underlier for the period noted below. We obtained the historical information presented in this document from Bloomberg Financial Markets, without independent verification. The underlier has at times experienced periods of high volatility. You should not take the historical closing levels of the underlier as an indication of its future performance, and no assurance can be given as to the closing level of the underlier at any time.
|
Underlier Daily Closing Levels January 1, 2020 to June 26, 2025 |
|
|
This document relates only to the securities referenced hereby and does not relate to the underlier or other securities of the underlying stock issuer. We have derived all disclosures contained in this document regarding the underlier from the publicly available documents described above. In connection with this offering of securities, neither we nor the agent has participated in the preparation of such documents or made any due diligence inquiry with respect to the underlying stock issuer. Neither we nor the agent makes any representation that such publicly available documents or any other publicly available information regarding the underlying stock issuer is accurate or complete. Furthermore, we cannot give any assurance that all events occurring prior to the date hereof (including events that would affect the accuracy or completeness of the publicly available documents described above) that would affect the trading price of the underlier (and therefore the closing level of the underlier on the strike date) have been publicly disclosed. Subsequent disclosure of any such events or the disclosure of or failure to disclose material future events concerning the underlying stock issuer could affect the value received with respect to the securities and therefore the value of the securities.
Neither we nor any of our affiliates makes any representation to you as to the performance of the underlier.
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Contingent Income Auto-Callable Securities Principal at Risk Securities |
Additional Terms of the Securities
Please read this information in conjunction with the terms on the cover of this document.
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Additional Terms: |
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If the terms described herein are inconsistent with those described in the accompanying product supplement or prospectus, the terms described herein shall control. |
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Denominations: |
$1,000 per security and integral multiples thereof |
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Day-count convention: |
Interest will be computed on the basis of a 360-day year of twelve 30-day months. |
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Interest period: |
The period from and including the original issue date (in the case of the first interest period) or the previous scheduled coupon payment date, as applicable, to but excluding the following scheduled coupon payment date, with no adjustment for any postponement thereof. |
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Underlying stock issuer: |
Advanced Micro Devices, Inc. |
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Amortization period: |
The 6-month period following the issue date |
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Trustee: |
The Bank of New York Mellon |
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Calculation agent: |
Morgan Stanley & Co. LLC (“MS & Co.”) |
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Morgan Stanley Finance LLC
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Contingent Income Auto-Callable Securities Principal at Risk Securities |
Additional Information About the Securities
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Additional Information: |
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Minimum ticketing size: |
$1,000 / 1 security |
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United States federal income tax considerations: |
You should review carefully the section in the accompanying product supplement entitled “United States Federal Income Tax Considerations.” The following discussion, when read in combination with that section, constitutes the full opinion of our counsel, Davis Polk & Wardwell LLP, regarding the material U.S. federal income tax consequences of owning and disposing of the securities. Generally, this discussion assumes that you purchased the securities for cash in the original issuance at the stated issue price and does not address other circumstances specific to you, including consequences that may arise due to any other investments relating to an underlier. You should consult your tax adviser regarding the effect any such circumstances may have on the U.S. federal income tax consequences of your ownership of a security. In the opinion of our counsel, which is based on current market conditions, it is reasonable to treat the securities for U.S. federal income tax purposes as prepaid financial contracts with associated coupons, and any coupons as ordinary income, as described in the section entitled “United States Federal Income Tax Considerations—Tax Consequences to U.S. Holders—Securities Treated as Prepaid Financial Contracts with Associated Coupons” in the accompanying product supplement. There is uncertainty regarding this treatment, and the IRS or a court might not agree with it. A different tax treatment could be adverse to you. We do not plan to request a ruling from the IRS regarding the treatment of the securities. An alternative characterization of the securities could materially and adversely affect the tax consequences of ownership and disposition of the securities, including the timing and character of income recognized. In particular, there is a risk that the securities could be characterized as debt instruments for U.S. federal income tax purposes, in which case the tax consequences of an investment in the securities could be different from those described herein and possibly adverse to certain investors. In addition, the U.S. Treasury Department and the IRS have requested comments on various issues regarding the U.S. federal income tax treatment of “prepaid forward contracts” and similar financial instruments and have indicated that such transactions may be the subject of future regulations or other guidance. Furthermore, members of Congress have proposed legislative changes to the tax treatment of derivative contracts. Any legislation, Treasury regulations or other guidance promulgated after consideration of these issues could materially and adversely affect the tax consequences of an investment in the securities, possibly with retroactive effect. Non-U.S. Holders. The U.S. federal income tax treatment of the coupons is unclear. To the extent that we have withholding responsibility in respect of the securities, we would expect generally to treat the coupons paid to Non-U.S. Holders (as defined in the accompanying product supplement) as subject to U.S. withholding tax. Moreover, you should expect that, if the applicable withholding agent determines that withholding tax should apply, it will be at a rate of 30% (or lower treaty rate). In order to claim an exemption from, or a reduction in, the 30% withholding under an applicable treaty, you may need to comply with certification requirements to establish that you are not a U.S. person and are eligible for such an exemption or reduction under an applicable tax treaty. You should consult your tax adviser regarding the tax treatment of the coupons. As discussed under “United States Federal Income Tax Considerations—Tax Consequences to Non-U.S. Holders—Dividend Equivalents under Section 871(m) of the Code” in the accompanying product supplement, Section 871(m) of the Internal Revenue Code and Treasury regulations promulgated thereunder (“Section 871(m)”) generally impose a 30% withholding tax on dividend equivalents paid or deemed paid to Non-U.S. Holders with respect to certain financial instruments linked to U.S. equities or indices that include U.S. equities. The Treasury regulations, as modified by an IRS notice, exempt financial instruments issued prior to January 1, 2027 that do not have a “delta” of one. Based on certain representations made by us, our counsel is of the opinion that Section 871(m) should not apply to the securities with regard to Non-U.S. Holders. Our determination is not binding on the IRS, and the IRS may disagree with this determination. We will not be required to pay any additional amounts with respect to U.S. federal withholding taxes. You should consult your tax adviser regarding the U.S. federal income tax consequences of an investment in the securities, including possible alternative treatments, as well as tax consequences arising under the laws of any state, local or non-U.S. taxing jurisdiction. |
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Additional considerations: |
Client accounts over which Morgan Stanley, Morgan Stanley Wealth Management or any of their respective subsidiaries have investment discretion are not permitted to purchase the securities, either directly or indirectly. |
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Morgan Stanley Finance LLC
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Contingent Income Auto-Callable Securities Principal at Risk Securities |
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Supplemental information regarding plan of distribution; conflicts of interest: |
Selected dealers and their financial advisors will collectively receive from the agent, MS & Co., a fixed sales commission of $27.50 for each security they sell; provided that dealers selling to investors purchasing the securities in fee-based advisory accounts will not receive a sales commission with respect to such securities. The price to public for investors purchasing the securities in fee-based advisory accounts will be $972.50 per security. In addition, selected dealers and their financial advisors may receive a structuring fee of up to $6.25 for each security from the agent or its affiliates. MS & Co. is an affiliate of MSFL and a wholly owned subsidiary of Morgan Stanley, and it and other affiliates of ours expect to make a profit by selling, structuring and, when applicable, hedging the securities. MS & Co. will conduct this offering in compliance with the requirements of FINRA Rule 5121 of the Financial Industry Regulatory Authority, Inc., which is commonly referred to as FINRA, regarding a FINRA member firm’s distribution of the securities of an affiliate and related conflicts of interest. MS & Co. or any of our other affiliates may not make sales in this offering to any discretionary account. See “Plan of Distribution (Conflicts of Interest)” and “Use of Proceeds and Hedging” in the accompanying product supplement. |
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Validity of the securities: |
In the opinion of Davis Polk & Wardwell LLP, as special counsel to MSFL and Morgan Stanley, when the securities offered by this pricing supplement have been executed and issued by MSFL, authenticated by the trustee pursuant to the MSFL Senior Debt Indenture (as defined in the accompanying prospectus) and delivered against payment as contemplated herein, such securities will be valid and binding obligations of MSFL and the related guarantee will be a valid and binding obligation of Morgan Stanley, enforceable in accordance with their terms, subject to applicable bankruptcy, insolvency and similar laws affecting creditors’ rights generally, concepts of reasonableness and equitable principles of general applicability (including, without limitation, concepts of good faith, fair dealing and the lack of bad faith), provided that such counsel expresses no opinion as to (i) the effect of fraudulent conveyance, fraudulent transfer or similar provision of applicable law on the conclusions expressed above and (ii) any provision of the MSFL Senior Debt Indenture that purports to avoid the effect of fraudulent conveyance, fraudulent transfer or similar provision of applicable law by limiting the amount of Morgan Stanley’s obligation under the related guarantee. This opinion is given as of the date hereof and is limited to the laws of the State of New York, the General Corporation Law of the State of Delaware and the Delaware Limited Liability Company Act. In addition, this opinion is subject to customary assumptions about the trustee’s authorization, execution and delivery of the MSFL Senior Debt Indenture and its authentication of the securities and the validity, binding nature and enforceability of the MSFL Senior Debt Indenture with respect to the trustee, all as stated in the letter of such counsel dated February 26, 2024, which is Exhibit 5-a to Post-Effective Amendment No. 2 to the Registration Statement on Form S-3 filed by Morgan Stanley on February 26, 2024. |
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Where you can find more information: |
Morgan Stanley and MSFL have filed a registration statement (including a prospectus, as supplemented by the product supplement) with the Securities and Exchange Commission (the “SEC”) for the offering to which this communication relates. You should read the prospectus in that registration statement, the product supplement and any other documents relating to this offering that MSFL and Morgan Stanley have filed with the SEC for more complete information about Morgan Stanley and this offering. You may get these documents without cost by visiting EDGAR on the SEC website at www.sec.gov. Alternatively, MSFL, Morgan Stanley, any underwriter or any dealer participating in the offering will arrange to send you the prospectus and the product supplement if you so request by calling toll-free 1-(800)-584-6837. Terms used but not defined in this document are defined in the product supplement or in the prospectus. Each of the product supplement and the prospectus can be accessed via the hyperlinks set forth on the cover of this document. |
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FAQ
What is the annual coupon rate on Morgan Stanley's 12 % Contingent Income Auto-Callable Securities?
When can the Morgan Stanley (MS) notes be automatically called?
How much principal protection do investors have at maturity?
What fees are embedded in the offering price?
Will the securities be listed on an exchange?
What is the CUSIP and ISIN for tracking these Morgan Stanley securities?
