Published on 2/9/2021 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley sells $1 million contingent income autocalls on S&P, Russell, Dow
By Wendy Van Sickle
Columbus, Ohio, Feb. 9 – Morgan Stanley Finance LLC priced $1 million of contingent income autocallable securities due Feb. 1, 2024 linked to the least performing of the S&P 500 index, the Dow Jones industrial average 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 6% 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 one year.
The payout at maturity will be par plus any coupon due unless 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: | S&P 500 index, Dow Jones industrial average, Russell 2000 index
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| Amount: | $1 million
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| Maturity: | Feb. 1, 2024
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| Coupon: | 6% 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 plus any coupon due 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 initial level on any quarterly call determination date after one year
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| Initial index levels: | 30,603.36 for Dow, 2,106.609 for Russell, 3,787.38 for S&P
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| Coupon barrier levels: | 21,422.352 for Dow, 1,474.626 for Russell, 2,689.029 for S&P; 70% of initial levels
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| Downside thresholds: | 18,326.016 for Dow, 1,263.965 for Russell, 2,272.428 for S&P; 60% of initial levels
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| Pricing date: | Jan. 28
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| Settlement date: | Feb. 2
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 0.75%
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| Cusip: | 61771EM88
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