Published on 10/27/2020 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $9.82 million contingent income autocallables on stocks
By Wendy Van Sickle
Columbus, Ohio, Oct. 27 – Morgan Stanley Finance LLC priced $9.82 million of contingent income autocallable securities due Oct. 19, 2023 linked to the worst performing of the common stocks of Tesla, Inc., Netflix Inc. and Amazon.com, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by Morgan Stanley.
The notes pay a contingent quarterly coupon at an annual rate of 25% if the shares of all stocks close at or above their 50% coupon barrier levels on the observation date for that quarter.
After six months, the notes will be called at par plus the contingent coupon if each stock closes at or above its initial price on any quarterly determination date other than the final one.
The payout at maturity will be par unless any stock finishes below its 50% downside threshold level, in which case investors will lose 1% for each 1% decline from the initial price for the worst performer.
Morgan Stanley & Co. LLC is the agent.
Issuer: | Morgan Stanley Finance LLC
|
Guarantor: | Morgan Stanley
|
Issue: | Contingent income autocallable securities
|
Underlying stocks: | Tesla, Inc., Netflix Inc. and Amazon.com, Inc.
|
Amount: | $9,818,000
|
Maturity: | Oct. 19, 2023
|
Coupon: | 25% per year, payable quarterly if least-performing stock closes at or above 50% coupon barrier on observation date for that quarter
|
Price: | Par
|
Payout at maturity: | If least-performing stock’s final share price is greater than or equal to downside threshold level, par plus final coupon; otherwise, 1% loss for every 1% that least-performing stock’s final share price is less than initial share price
|
Call: | After six months, at par plus contingent coupon if each stock closes at or above initial share price on any quarterly determination date other than the final one
|
Initial share prices: | $439.67 for Tesla, $530.79 for Netflix and $3,272.71 for Amazon
|
Downside thresholds: | $219.835 for Tesla, $265.395 for Netflix and $1,636.355 for Amazon, 50% of initial level
|
Pricing date: | Oct. 16
|
Settlement date: | Oct. 21
|
Agent: | Morgan Stanley & Co. LLC
|
Fees: | 2.75%
|
Cusip: | 61771ECN6
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.