Published on 12/9/2019 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $1.12 million contingent income autocallables linked to indexes
By Angela McDaniels
Tacoma, Wash., Dec. 9 – Morgan Stanley Finance LLC priced $1.12 million of contingent income autocallable securities due Oct. 31, 2024 linked to the least performing of the Russell 2000 index, the Nasdaq-100 index and the Dow Jones industrial average, according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes will pay a contingent coupon at the rate of 5.85% per year if each index closes at or above its coupon threshold level, 75% of its initial level, on the determination date for that quarter.
Beginning Nov. 27, 2020, the notes will be automatically called at par if each index closes at or above its initial level on any quarterly redemption determination date.
The payout at maturity will be par unless any index finishes below its downside threshold level, 60% of its initial level, in which case investors will lose 1% for every 1% that the least-performing index declines 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: | Contingent income autocallable securities
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Underlying indexes: | Russell 2000, Nasdaq-100 and Dow Jones industrial average
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Amount: | $1,115,000
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Maturity: | Oct. 31, 2024
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Coupon: | 5.85% per year, payable quarterly if each index closes at or above coupon threshold on determination date for that quarter
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Price: | Par
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Payout at maturity: | Par unless any index finishes below downside threshold level, in which case exposure to decline of least-performing index
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Call: | Beginning Nov. 27, 2020, automatically at par if each index closes at or above initial level on any quarterly redemption determination date
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Initial levels: | 1,624.231 for Russell 2000, 8,385.745 for Nasdaq-100 and 28,121.68 for Dow
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Coupon thresholds: | 1,218.173 for Russell 2000, 6,289.309 for Nasdaq-100 and 21,091.26 for Dow, or 75% of initial levels
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Downside thresholds: | 974.539 for Russell 2000, 5,031.447 for Nasdaq-100 and 16,873.008 for Dow, or 60% of initial levels
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Pricing date: | Nov. 26
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Settlement date: | Dec. 2
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Agent: | Morgan Stanley & Co. LLC
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Fees: | 3.55%
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Cusip: | 61769HU86
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