Published on 3/20/2020 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley sells $13.03 million contingent income autocalls on three tech stocks
By Sarah Lizee
Olympia, Wash., March 20 – Morgan Stanley Finance LLC priced $13.03 million of contingent income autocallable securities due March 16, 2023 linked to the worst performing of the common stocks of Microsoft Corp., Apple Inc. and Alphabet 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 16% if each stock closes at or above its coupon barrier, 60% of its initial level, on the determination date for that period.
The notes will be called at par plus the contingent coupon 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. Morgan Stanley Wealth Management is the dealer.
| 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: | Microsoft Corp., Apple Inc. and Alphabet Inc.
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| Amount: | $13,032,400
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| Maturity: | March 16, 2023
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| Coupon: | 16% per year, payable each month that each stock closes at or above coupon barrier on determination date for that period
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| Price: | Par
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| 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
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| Call: | The notes will be called at par plus the contingent coupon if each stock closes above its initial level on any monthly redemption date
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| Initial share prices: | $158.83 for Microsoft, $277.97 for Apple, $1,214.27 for Alphabet
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| Coupon barriers: | $95.298 for Microsoft, $166.782 for Apple, $728.562 for Alphabet; 60% of initial share prices
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| Downside thresholds: | $95.298 for Microsoft, $166.782 for Apple, $728.562 for Alphabet; 60% of initial share prices
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| Pricing date: | March 13
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| Settlement date: | March 18
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| Agent: | Morgan Stanley & Co. LLC
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| Dealer: | Morgan Stanley Wealth Management
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| Fees: | 2.5%
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| Cusip: | 61770G781
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