Published on 3/28/2022 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $1.5 million contingent income autocallable securities on stocks
By William Gullotti
Buffalo, N.Y., March 28 – Morgan Stanley Finance LLC priced $1.5 million of contingent income autocallable securities due April 30, 2026 linked to the worst performing of the shares of Microsoft Corp., Apple Inc. and Amazon.com, Inc., according to a 424B2 filed with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annual rate of 7% if each underlying stock closes at or above its 60% coupon barrier on the observation date for that quarter.
The notes will be called at par plus the coupon if each stock closes at or above its initial level on any quarterly review date after one year.
The payout at maturity will be par plus any coupon due unless any underlying stock finishes below its 60% downside threshold, in which case investors will be fully exposed to any losses of the worst performing stock.
The guarantor is Morgan Stanley.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley Finance LLC
|
| Guarantor: | Morgan Stanley
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| Issue: | Contingent income autocallable securities
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| Underlying stocks: | Microsoft Corp., Apple Inc., Amazon.com, Inc.
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| Amount: | $1,500,000
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| Maturity: | April 30, 2026
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| Coupon: | 7% annualized, payable quarterly if each stock closes at or above coupon barrier on review date for that quarter
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| Price: | Par
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| Payout at maturity: | If each stock finishes at or above downside threshold, par plus any coupon due; otherwise, 1% loss for each 1% decline of worst performing stock
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| Call: | At par plus coupon if each stock closes at or above its initial level on any quarterly call date after one year
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| Initial levels: | $261.97 for Microsoft, $134.39 for Apple, $3,417.43 for Amazon
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| Coupon barrier levels: | $157.182 for Microsoft, $80.634 for Apple, $2,050.458 for Amazon; 60% of initial levels
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| Downside thresholds: | $157.182 for Microsoft, $80.634 for Apple, $2,050.458 for Amazon; 60% of initial levels
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| Pricing date: | April 27, 2021
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| Settlement date: | April 30, 2021
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 3.35%
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| Cusip: | 61771VC32
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