Published on 10/26/2020 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley sells $6.73 million contingent income autocallable notes on stocks
By Wendy Van Sickle
Columbus, Ohio, Oct. 26 – Morgan Stanley Finance LLC priced $6.73 million of contingent income autocallable securities due Oct. 19, 2023 linked to the stocks of Blackstone Group Inc., Goldman Sachs Group, Inc. and JPMorgan Chase & Co., according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes will pay a contingent coupon at the rate of 10.05% per year if each stock closes at or above its coupon barrier level, 60% of its initial level, on the observation date that quarter.
The notes will be automatically called at par if each stock closes at or above its initial level on any quarterly redemption date.
If the lowest-performing stock finishes at or above its barrier level, 60% of its initial level, the payout at maturity will be par plus the final coupon. If the lowest-performing stock finishes below its barrier level, investors will be fully exposed to the decline of the lowest-performing stock 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 stocks: | Blackstone Group Inc., Goldman Sachs Group, Inc. and JPMorgan Chase & Co.
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Amount: | $6,732,000
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Maturity: | Oct. 19, 2023
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Coupon: | 10.05% per year, payable quarterly if each stock closes at or above coupon barrier level on observation date that quarter
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Price: | Par
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Payout at maturity: | If each stock finishes at or above downside threshold level, par plus any coupon; if any stock finishes below downside threshold level, full exposure to decline of lowest-performing stock from its initial level
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Call: | Automatically at par plus coupon on any quarterly redemption date
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Initial levels: | $55.78 for Blackstone, $206.21 for Goldman, $101.51 for JPMorgan
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Coupon barriers: | $33.468 for Blackstone, $123.726 for Goldman, $60.906 for JPMorgan; 60% of initial levels
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Downside threshold levels: | $33.468 for Blackstone, $123.726 for Goldman, $60.906 for JPMorgan; 60% of initial levels
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Pricing date: | Oct. 16
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Settlement date: | Oct. 21
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Agent: | Morgan Stanley & Co. LLC
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Fees: | 2.5%
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Cusip: | 61771D829
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