Published on 12/10/2020 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley sells $1 million callable contingent income notes on indexes
By Taylor Fox
New York, Dec. 10 – Morgan Stanley Finance LLC priced $1 million of callable contingent income securities due Dec. 9, 2025 tied to the Dow Jones industrial average, the Russell 2000 index and the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a quarterly contingent coupon at the rate of 6.1% per year if each index closes at or above its coupon barrier level, 60% of its initial level, on the observation date that period.
The notes will be callable at par quarterly beginning June 9, 2021.
If the lowest-performing index finishes at or above its downside threshold level, 60% of its initial level, the payout at maturity will be par plus the final coupon. If the lowest-performing index finishes below its downside threshold level, investors will be fully exposed to the decline of the lowest-performing index from its initial level.
The notes are guaranteed by Morgan Stanley.
Morgan Stanley & Co. LLC is the agent.
Issuer: | Morgan Stanley Finance LLC
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Guarantor: | Morgan Stanley
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Issue: | Callable contingent income securities
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Underlying indexes: | S&P 500 index, Russell 2000 index and Dow Jones industrial average
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Amount: | $1 million
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Maturity: | Dec. 9, 2025
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Coupon: | 6.1% per year, payable quarterly if each index closes at or above coupon barrier level on observation date that period
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Price: | Par
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Payout at maturity: | If each index finishes at or above downside threshold level, par; if any index finishes below downside threshold level, full exposure to decline of lowest-performing index from its initial level
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Call option: | At par on any quarterly redemption date beginning June 9, 2021
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Initial levels: | 30,218.26 for Dow, 1,892.449 for Russell, 3,699.12 for S&P
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Coupon barriers: | 18,130.956 for Dow, 1,135.469 for Russell, 2,219.472 for S&P; 60% of initial levels
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Downside threshold levels: | 18,130.956 for Dow, 1,135.469 for Russell, 2,219.472 for S&P; 60% of initial levels
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Pricing date: | Dec. 4
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Settlement date: | Dec. 9
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Agent: | Morgan Stanley & Co. LLC
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Fees: | None
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Cusip: | 61771ERH3
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