Published on 6/29/2020 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley sells $500,000 contingent income buffered autocalls on Nasdaq, Russell
By Kiku Steinfeld
Chicago, June 29 – Morgan Stanley Finance LLC priced $500,000 of contingent income buffered autocallable securities due June 20, 2022 linked to the lesser performing of the Nasdaq-100 index and the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by Morgan Stanley.
Each quarter, the notes will pay a contingent coupon at the rate of 9.65% per year if each underlier closes at or above its coupon threshold, 85% of its initial level, on the determination date for that quarter.
The notes will be automatically called at par plus the coupon if each underlier closes at or above its initial level on any quarterly determination date.
The payout at maturity will be par plus the coupon unless either underlier finishes below its buffer level, 85% of its initial level, in which case investors will lose 1% for every 1% that the lesser-performing underlier declines beyond 15%.
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 buffered autocallable securities
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Underliers: | Nasdaq-100 index and Russell 2000 index
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Amount: | $500,000
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Maturity: | June 20, 2022
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Coupon: | 9.65% per year, payable quarterly if each underlier closes at or above its coupon threshold on determination date for that quarter
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Price: | Par
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Payout at maturity: | Par plus the coupon unless either underlier finishes below its buffer level, in which case investors will lose 1% for every 1% that lesser-performing underlier declines beyond 15%
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Call: | At par plus coupon if each underlier closes at or above its initial level on any quarterly determination date
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Initial levels: | 1,419.607 for Russell, 9,776.891 for Nasdaq
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Coupon thresholds: | 1,206.666 for Russell and 8,310.357 for Nasdaq; 85% of initial levels
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Buffer levels: | 1,206.666 for Russell and 8,310.357 for Nasdaq; 85% of initial levels
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Pricing date: | June 15
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Settlement date: | June 18
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Agent: | Morgan Stanley & Co. LLC
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Fees: | 2.5%
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Cusip: | 61771BNK6
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