Free Writing Prospectus to Preliminary Pricing Supplement No. 6,254
Registration Statement Nos. 333-275587; 333-275587-01
Dated January 29, 2025; Filed pursuant to Rule 433
Morgan Stanley
1.5-Year Buffered PLUS Based on the Performance of an Equally Weighted Basket Consisting of Ten Stocks
This document provides a summary of the terms of the Buffered PLUS. Investors must carefully review the accompanying preliminary pricing supplement referenced below, product supplement and prospectus, and the “Risk Considerations” on the following page, prior to making an investment decision.
Terms | ||
Issuing entity: | Morgan Stanley Finance LLC | |
Guarantor: | Morgan Stanley | |
Basket: | Basket Component | Weighting |
Antero Resources Corporation common stock (AR) | 10% | |
CNX Resources Corporation common stock (CNX) | 10% | |
Enterprise Products Partners L.P. common units (EPD) | 10% | |
EQT Corporation common stock (EQT) | 10% | |
Energy Transfer LP common units (ET) | 10% | |
Expand Energy Corporation common stock (EXE) | 10% | |
Fluor Corporation common stock (FLR) | 10% | |
GE Vernova Inc. common stock (GEV) | 10% | |
Ingersoll Rand Inc. common stock (IR) | 10% | |
Kinder Morgan, Inc. class P common stock (KMI) | 10% | |
Leverage factor: | 150% | |
Maximum payment at maturity: | At least $1,180 per Buffered PLUS | |
Buffer Amount: | 10% of the initial basket value | |
Pricing date: | February 7, 2025 | |
Valuation date: | August 7, 2026 | |
Maturity date: | August 12, 2026 | |
CUSIP: | 61778C6J9 | |
Preliminary pricing supplement: | https://www.sec.gov/Archives/edgar/data/1666268/000183988225004681/ms6254_424b2-02454.htm | |
Hypothetical Payout at Maturity1
| |
Change in Basket | Return on Buffered PLUS |
+100.00% | 18.00%* |
+80.00% | 18.00%* |
+60.00% | 18.00%* |
+50.00% | 18.00%* |
+40.00% | 18.00%* |
+20.00% | 18.00%* |
+12.00% | 18.00%* |
+10.00% | 15.00% |
0.00% | 0.00% |
-5.00% | 0.00% |
-10.00% | 0.00% |
-11.00% | 1.00% |
-20.00% | -10.00% |
-40.00% | -30.00% |
-60.00% | -50.00% |
-80.00% | -70.00% |
-100.00% | -90.00% |
*Assumes a maximum payment at maturity of 118% of principal | |
1All payments are subject to our credit risk
The issuer has filed a registration statement (including a prospectus) with the SEC for the offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement and other documents the issuer has filed with the SEC for more complete information about the issuer and this offering. You may get these documents for free by visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the issuer, any underwriter or any dealer participating in the offering will arrange to send you the prospectus if you request it by calling toll-free 1-800-584-6837.
Basket Components
For more information about the basket components, including historical performance information, see the accompanying preliminary pricing supplement.
Risk Considerations
The risks set forth below are discussed in more detail in the “Risk Factors” section in the accompanying preliminary pricing supplement. Please review those risk factors carefully prior to making an investment decision.
Risks Relating to an Investment in the Buffered PLUS
●The basket stocks are concentrated in the gas infrastructure sector.
●The Buffered PLUS do not pay interest and provide a minimum payment at maturity of only 10% of your principal.
●The appreciation potential of the Buffered PLUS is limited by the maximum payment at maturity.
●The market price of the Buffered PLUS will be influenced by many unpredictable factors.
●The Buffered PLUS 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 Buffered PLUS.
●As a finance subsidiary, MSFL has no independent operations and will have no independent assets.
●The amount payable on the Buffered PLUS is not linked to the basket closing value at any time other than the valuation date.
●Investing in the Buffered PLUS is not equivalent to investing in the basket components.
●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 Buffered PLUS in the original issue price reduce the economic terms of the Buffered PLUS, cause the estimated value of the Buffered PLUS to be less than the original issue price and will adversely affect secondary market prices.
●The estimated value of the Buffered PLUS is approximately $938.60 per Buffered PLUS, or within $35.00 of that estimate, and 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 Buffered PLUS will not be listed on any securities exchange and secondary trading may be limited.
●The calculation agent, which is a subsidiary of Morgan Stanley and an affiliate of MSFL, will make determinations with respect to the Buffered PLUS.
●Hedging and trading activity by our affiliates could potentially adversely affect the value of the Buffered PLUS.
●The U.S. federal income tax consequences of an investment in the Buffered PLUS are uncertain.
Risks Relating to the Basket Components
●Changes in the values of the basket components may offset each other.
●Basket stock prices can be volatile.
●We are not affiliated with the issuers of the basket stocks.
●We may engage in business with or involving one or more of the issuers of the basket stocks without regard to your interests.
●The share closing prices of the basket stocks may come to be based on the value of the stock of companies other than the issuers of the basket stocks.
●The adjustments to the adjustment factors the calculation agent is required to make do not cover every corporate event that can affect the basket stocks.
Tax Considerations
You should review carefully the discussion in the accompanying preliminary pricing supplement under the caption “Additional Information About the Buffered PLUS – Tax considerations” concerning the U.S. federal income tax consequences of an investment in the Buffered PLUS, and you should consult your tax adviser.