Published on 8/18/2021 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley sells $700,000 contingent income autocallable securities on three stocks
By William Gullotti
Buffalo, N.Y., Aug. 18 – Morgan Stanley Finance LLC priced $700,000 of contingent income autocallable securities due May 16, 2024 linked to the worst performing of the common stocks of Amazon.com, Inc., Costco Wholesale Corp. and Tesla, Inc., according to a 424B2 filed with the Securities and Exchange Commission.
The notes will be guaranteed by Morgan Stanley.
The notes will pay a contingent monthly coupon at an annual rate of 16% if each underlying stock closes at or above its 50% coupon barrier on the observation date for that period.
The notes will be called at par plus the coupon if each stock closes at or above its initial level on any monthly review date after six months.
The payout at maturity will be par plus any coupon due unless either underlying stock finishes below its 50% 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: | Amazon.com, Inc., Costco Wholesale Corp., Tesla, Inc.
|
| Amount: | $700,000
|
| Maturity: | May 16, 2024
|
| Coupon: | 16% annualized, payable monthly if each stock closes at or above coupon barrier on review date for that period
|
| Price: | Par
|
| Payout at maturity: | If each stock finishes at or above downside threshold, par plus any coupon due; otherwise, 1% loss for each 1% decline of worst performing stock
|
| Call: | At par plus coupon if each stock closes at or above its initial level on any monthly call date after six months
|
| Initial levels: | $3,223.91 for Amazon, $378.18 for Costco, $617.20 for Tesla
|
| Coupon barrier levels: | $1,611.955 for Amazon, $189.09 for Costco, $308.60 for Tesla; 50% of initial levels
|
| Downside threshold levels: | $1,611.955 for Amazon, $189.09 for Costco, $308.60 for Tesla; 50% of initial levels
|
| Pricing date: | May 12
|
| Settlement date: | May 17
|
| Agent: | Morgan Stanley & Co. LLC
|
| Fees: | 0.75%
|
| Cusip: | 61771VQ37
|
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