Morgan Stanley Finance LLC filed a free writing prospectus on November 9, 2026, disclosing terms for Contingent Income Auto-Callable Securities linked to Novo Nordisk A/S American depositary shares, with a maturity date of December 29, 2027.

Key Highlights

  • Underlier: The securities are linked to Novo Nordisk A/S American depositary shares (NVO).
  • Contingent coupon: 9.15% per annum, paid monthly, subject to the underlier closing at or above 65% of the initial level on the related observation date.
  • Call threshold: Securities will be automatically redeemed if the underlier closes at or above 100% of the initial level on any monthly redemption determination date, beginning after 6 months.
  • Downside threshold: 65% of the initial level; losses below that level are passed through, with a payment at maturity of $0.00 if the underlier falls 100%.
  • Estimated value: $964.50 per security, or within $35.00 of that estimate, against an original issue price of $1,000.00 per security.
  • Pricing date: November 23, 2026; maturity date December 29, 2027; CUSIP 61781TYK3.
  • No principal guarantee: According to the filing, "the securities do not guarantee the return of any principal."

Terms and Structure of Morgan Stanley Finance LLC's NVO-Linked Auto-Callable Securities

According to the filing, Morgan Stanley Finance LLC is the issuer of these structured securities, with Morgan Stanley acting as guarantor. The securities are described as Contingent Income Auto-Callable Securities due December 29, 2027, filed under Registration Statement Nos. 333-293641 and 333-293641-01. The pricing date is set for November 23, 2026, and the final observation date is December 23, 2027. All payments on the securities are stated to be subject to the credit risk of the issuer and guarantor.

The filing discloses that a contingent coupon of 9.15% per annum will be paid monthly, but only if the closing level of the underlier on the relevant observation date is at or above the coupon barrier level, which is set at 65% of the initial level. If the underlier closes below that barrier on any observation date, no coupon is paid for that period. Automatic early redemption occurs if the underlier closes at or above 100% of the initial level on any monthly redemption determination date, beginning after six months from issuance.

The filing's hypothetical payment table illustrates that investors receive $1,000.00 per security at maturity for underlier declines up to 35%, but that losses are incurred below the 65% downside threshold level. For example, a 50% decline in the underlier would result in a $500.00 payment per security, and a 100% decline would result in $0.00. The filing also states that the estimated value of $964.50 per security "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." The securities will not be listed on any securities exchange, and secondary trading may be limited, according to the filing.

What Was Disclosed

Morgan Stanley Finance LLC disclosed the preliminary terms of auto-callable structured notes linked to Novo Nordisk ADS, including a 9.15% per annum contingent coupon, a 65% downside threshold, an estimated value of $964.50 per security, and a December 29, 2027 maturity date.