Published on 3/4/2022 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley sells $5 million contingent income securities on Nasdaq, Russell, Dow
By William Gullotti
Buffalo, N.Y., March 4 – Morgan Stanley Finance LLC priced $5 million of contingent income securities due March 6, 2023 tied to the worst performing of the Nasdaq-100 index, the Russell 2000 index and the Dow Jones industrial average, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a quarterly contingent coupon at the rate of 7% per year if each index closes at or above its coupon barrier level, 70% of its initial level, on the observation date that period.
If all indexes finish at or above the coupon barrier, the payout at maturity will be par plus the final coupon.
If the worst performer falls below the coupon barrier but finishes at or above its downside threshold level, 60% of its initial level, the payout at maturity will be par. Otherwise, investors will lose 1% for every 1% decline of the worst performer from its initial level.
The notes are guaranteed by Morgan Stanley.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley Finance LLC
|
| Guarantor: | Morgan Stanley
|
| Issue: | Contingent income securities
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| Underlying indexes: | Nasdaq-100 index, Russell 2000 index, Dow Jones industrial average
|
| Amount: | $4,996,000
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| Maturity: | March 6, 2023
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| Coupon: | 7% per year, payable quarterly if each index closes at or above coupon barrier level on observation date that period
|
| Price: | Par
|
| Payout at maturity: | If each index finishes at or above coupon barrier, par plus the final coupon; if the worst performer falls below the coupon barrier but finishes at or above the downside threshold, par; otherwise, full exposure to decline of lowest-performing index from its initial level
|
| Initial levels: | 14,005.99 for Nasdaq, 2,008.506 for Russell, 33,294.95 for Dow
|
| Coupon barriers: | 9,804.193 for Nasdaq, 1,405.954 for Russell, 23,306.465 for Dow; 70% of initial levels
|
| Downside threshold levels: | 8,403.594 for Nasdaq, 1,205.104 for Russell, 19,976.97 for Dow; 60% of initial levels
|
| Pricing date: | March 1
|
| Settlement date: | March 4
|
| Agent: | Morgan Stanley & Co. LLC
|
| Fees: | 0.6%
|
| Cusip: | 61773QHH5
|
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