Published on 8/13/2020 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley sells $1.83 million contingent income autocalls on Dow, Russell, S&P
By Sarah Lizee
Olympia, Wash., Aug. 13 – Morgan Stanley Finance LLC priced $1.83 million of contingent income autocallable securities due Feb. 3, 2022 linked to the least performing of 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 are guaranteed by Morgan Stanley.
Each quarter, the notes will pay a contingent coupon at the rate of 11.5% per year if each index closes at or above its coupon barrier level, 70% of its initial level, on the determination date for that quarter.
The notes will be automatically called at par if each index closes at or above its initial level on any quarterly call determination date after six months.
The payout at maturity will be par any index finishes below its 60% downside threshold, in which case investors will lose 1% for every 1% that the least-performing index declines from its initial level.
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: | Dow Jones industrial average, Russell 2000 index and S&P 500 index
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Amount: | $1,828,000
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Maturity: | Feb. 3, 2022
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Coupon: | 11.5% per year, payable quarterly if each index closes at or above barrier level 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 its downside threshold, in which case investors will lose 1% for every 1% that the least-performing index declines from its initial level
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Call: | Automatically at par if each index closes at or above its initial level on any quarterly call determination date after six months
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Initial levels: | 1,480.427 for Russell, 3,271.12 for S&P, 26,428.32 for Dow
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Coupon barriers: | 1,036.299 for Russell, 2,289.784 for S&P, 18,499.824 for Dow; 70% of initial levels
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Barrier values: | 888.256 for Russell, 1,962.672 for S&P, 15,856.992 for Dow; 60% of initial levels
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Pricing date: | July 31
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Settlement date: | Aug. 5
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Agent: | Morgan Stanley & Co. LLC
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Fees: | 0.6%
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Cusip: | 61771BC36
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