Published on 3/19/2021 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $4.01 million callable contingent income securities on indexes
By Kiku Steinfeld
Chicago, March 19 – Morgan Stanley Finance LLC sold $4.01 million of callable contingent income securities due March 7, 2024 tied to the worst performing of the S&P 500 index, the Nasdaq-100 index and the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
Each month, the notes will pay a contingent coupon at the rate of 8.4% per year if each index closes at or above its coupon threshold level, 70% of its initial level, on the related determination date.
The notes will be callable at par on any quarterly observation date after one year.
The payout at maturity will be par unless any index finishes below its 55% downside threshold, in which case investors will be fully exposed to the performance of the least performing index.
The notes are guaranteed by Morgan Stanley.
Morgan Stanley & Co. LLC is the agent.
Issuer: | Morgan Stanley Finance LLC
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Guarantor: | Morgan Stanley
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Issue: | Callable contingent income securities
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Underlying indexes: | S&P 500 index, Nasdaq-100 index and Russell 2000 index
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Amount: | $4,010,000
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Maturity: | March 7, 2024
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Coupon: | 8.4% per year, payable each month if each index closes at or above its coupon threshold level on the related determination date
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Price: | Par
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Call option: | At par on any quarterly observation date after one year
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Payout at maturity: | Par unless any index finishes below its downside threshold, in which case investors will be fully exposed to the performance of the least performing index
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Initial levels: | 3,870.29 for S&P, 2,231.509 for Russell and 13,059.95 for Nasdaq
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Coupon threshold levels: | 2,709.203 for S&P, 1,562.056 for Russell and 9,141.965 for Nasdaq, or 70% of initial levels
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Downside threshold levels: | 2,128.660 for S&P, 1,227.33 for Russell and 7,182.973 for Nasdaq, or 55% of initial levels
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Pricing date: | March 2
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Settlement date: | March 5
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Agent: | Morgan Stanley & Co. LLC
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Fees: | 0.75%
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Cusip: | 61771VGB0
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