Published on 7/24/2020 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley sells $2.6 million contingent income autocalls on four tech stocks
By Kiku Steinfeld
Chicago, July 24 – Morgan Stanley Finance LLC priced $2.6 million of contingent income autocallable securities due July 26, 2023 linked to the worst performing of the common stocks of Microsoft Corp., Intel Corp., Alphabet Inc. and Cisco Systems, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by Morgan Stanley.
Each month, the notes will pay a contingent coupon at an annual rate of 9.85% if each stock closes at or above its coupon barrier, 60% of its initial level, on the determination date for that period, in which case the notes will also pay any previously unpaid coupons.
After six months, the notes will be called at par if each stock closes above its initial level on any monthly redemption date.
The payout at maturity will be par unless any stock finishes below its 60% downside threshold, in which case investors will be fully exposed to any losses of the worst performing stock.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley Finance LLC
|
| Guarantor: | Morgan Stanley
|
| Issue: | Contingent income autocallable securities
|
| Underlying stocks: | Microsoft Corp., Intel Corp., Alphabet Inc. and Cisco Systems, Inc.
|
| Amount: | $2,600,000
|
| Maturity: | July 26, 2023
|
| Coupon: | 9.85% per year, payable each month that each stock closes at or above coupon barrier on determination date for that period, in which case the notes will also pay any previously unpaid coupons.
|
| Price: | Par
|
| Payout at maturity: | If final share price of least performing stock is greater than or equal to downside threshold level, par; otherwise, full exposure to decline of worst performer
|
| Call: | After six months, the notes will be called at par if each stock closes above its initial level on any monthly redemption date
|
| Initial share prices: | $208.75 for Microsoft, $60.70 for Intel, $1,555.92 for Alphabet, $47.02 for Cisco
|
| Coupon barriers: | $125.25 for Microsoft, $36.42 for Intel, $933.552 for Alphabet, $28.212 for Cisco; 60% of initial share prices
|
| Downside thresholds: | $125.25 for Microsoft, $36.42 for Intel, $933.552 for Alphabet, $28.212 for Cisco; 60% of initial share prices
|
| Pricing date: | July 21
|
| Settlement date: | July 24
|
| Agent: | Morgan Stanley & Co. LLC
|
| Fees: | 3.75%
|
| Cusip: | 61771BVS0
|
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